GBP/JPY refreshes yearly high near 200.00 on Japanese Yen’s continued underperformance
- GBP/JPY extends winning streak as the Japanese Yen underperforms due to spoiled trade talks between the US and Japan.
- Japan is reluctant to accept agricultural imports from the US.
- UK government’s decision to increase welfare spending led to a sharp decline in the Pound Sterling.
The GBP/JPY pair extends its winning streak for the third trading day on Wednesday. The cross posts a fresh yearly high near 199.85 as the Japanese Yen (JPY) continues to underperform its peers, while United States (US) President Donald Trump imposes 25% tariffs on imports from Japan for failing to close a deal during the 90-day tariff pause.
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | -0.08% | 0.09% | 0.09% | -0.16% | -0.13% | -0.00% | |
| EUR | -0.02% | -0.09% | 0.05% | 0.07% | -0.15% | -0.16% | 0.09% | |
| GBP | 0.08% | 0.09% | 0.18% | 0.16% | -0.14% | -0.12% | 0.08% | |
| JPY | -0.09% | -0.05% | -0.18% | -0.03% | -0.25% | -0.23% | -0.08% | |
| CAD | -0.09% | -0.07% | -0.16% | 0.03% | -0.20% | -0.21% | 0.02% | |
| AUD | 0.16% | 0.15% | 0.14% | 0.25% | 0.20% | -0.00% | 0.25% | |
| NZD | 0.13% | 0.16% | 0.12% | 0.23% | 0.21% | 0.00% | 0.21% | |
| CHF | 0.00% | -0.09% | -0.08% | 0.08% | -0.02% | -0.25% | -0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Over the weekend, US President Trump released letters to 14 nations, outlining tariff rates, for not signing trade pact in which notable name was Japan, who has been consistently negotiating bilateral terms with Washington from weeks and has signaled that it will continue to do so.
Japanese Prime Minister Shigeru Ishiba said on Tuesday that Tokyo would continue negotiations with the US to seek a mutually beneficial trade deal, Reuters reported.
Progress in trade talks between the US and Japan spoiled as Tokyo is reluctant to accept agricultural import, especially rice.
Increasing uncertainty surrounding the US-Japan trade deal is jeopardizing market expectations that the Bank of Japan (BoJ) would raise interest rates again this year.
Meanwhile, the Pound Sterling (GBP) strives to regain composure after sliding significantly last week due to a sharp increase in United Kingdom (UK) gilt yields, following the announcement of an increase in welfare spending bill. 10-year UK gilt yields have increased to near 4.63%, the third highest among developed nations.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
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