Chat with us, powered by LiveChat

GBP/JPY Soars to 2008 Highs on BoJ Inaction

GBP/JPY breaks through the 197.00 barrier for the first time since 2008 as the market forcefully challenges the Bank of Japan’s (BoJ) ultra-loose monetary policy. This historic surge is fueled by the BoJ’s decision to maintain its accommodative stance, prompting a widespread Yen selloff.

Key Factors:

  • BoJ Disappointment: The lack of any substantive policy shift by the BoJ, despite rising inflation and pressure on the Yen, has significantly weakened the Japanese currency.
  • UK Economic Calendar: A relatively subdued UK economic calendar next week keeps the focus on the Yen’s dynamics.
  • Japanese Retail Sales: The upcoming release of Japan’s Retail Sales figures on Tuesday could add further volatility to the Yen, with expectations of a slowdown in growth.

Technical Outlook: Extreme Bullish Momentum

  • Uncharted Territory: GBP/JPY ventures into multi-year highs, signaling a powerful breakout and bullish continuation.
  • Strong Gains: The pair’s remarkable 10.2% surge from its 2024 low further reinforces the bullish narrative.
  • Historical Perspective: The current price action echoes the 2020 recovery, where GBP/JPY gained over 50% from its lows.


GBP/JPY’s trajectory remains strongly bullish as the market continues to challenge the BoJ’s dovish policy. Traders should monitor upcoming Japanese economic data for potential catalysts affecting the Yen and GBP/JPY.