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26/05/26
24
GBP/JPY Dips From Monthly High as BoE Bets Fade and Yen Holds Firm
GBP/JPY eased in Asian trading on Tuesday after touching a fresh monthly high near 215, giving back part of the previous session’s advance. The pair remained only modestly lower around 214, as selling pressure lacked conviction and dip buyers continued to emerge.
The British pound came under pressure from several directions. Traders have scaled back expectations for the Bank of England’s next interest rate increase after UK inflation unexpectedly slowed to 2.8% in April from 3.3% in the prior month. Political uncertainty in the UK has added to the strain, while renewed demand for the US dollar has also weighed on sterling.
The Japanese yen found support from comments by Bank of Japan Deputy Governor Ryozo Himino, who indicated that the central bank will keep raising rates in line with developments in economic activity, prices, and financial conditions. That stance helped keep GBP/JPY under modest pressure. Even so, yen strength was limited by concerns that Japan could face economic headwinds if disruptions to energy supplies from the Middle East persist.
With no major economic releases scheduled for Tuesday, investors are likely to focus on whether the pair can sustain losses or whether recent buyers step in again. The lack of strong follow-through selling suggests the broader short-term uptrend has not yet been fully reversed.
From a technical perspective, the rebound from support near 211, which aligns with the 100-day moving average, remains an important reference point. That recovery continues to favor bullish traders and points to the possibility that any deeper pullback may attract fresh buying interest.
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