GBP/JPY Price Forecast: Slides, as BoJ hawkish stance underpins Yen

💡 DMK Insight

GBP/JPY’s 0.61% drop signals a shift in market sentiment as the JPY gains traction. The speculation around the Bank of Japan’s potential rate hikes is driving this move, suggesting traders are recalibrating their positions. If the BoJ indeed raises rates, it could strengthen the JPY further, impacting not just GBP/JPY but also other pairs like EUR/JPY and AUD/JPY. Watch for the 200-day moving average on the GBP/JPY chart, as a break below could trigger more selling pressure. On the flip side, if the BoJ’s actions don’t align with market expectations, we could see a sharp reversal. Keep an eye on upcoming economic data releases from Japan and the UK, as they could provide additional context for this volatility. The next few sessions will be crucial for determining whether this trend continues or reverses.