empty
13.02.2025 12:33 PM
GBP/JPY: Analysis and Forecast

This image is no longer relevant

The GBP/JPY pair has been demonstrating a steady recovery this week, rebounding from around 187.00, the lowest level since September 2024. On Thursday, the pair extended its positive momentum for the fourth consecutive day, though spot prices remain below the key psychological level of 193.00.

Optimistic UK macroeconomic data has been supporting the pound's recovery. The UK Office for National Statistics (ONS) reported an unexpected 0.1% quarter-on-quarter GDP growth for the three months ending in December 2024, following zero growth in the previous quarter. Year-on-year GDP growth for Q4 reached 1.4%, exceeding expectations of 1.1% and the 0.9% increase seen in Q3.

Additionally, industrial production and manufacturing output data also outperformed forecasts, contributing to the pound's modest rise.

The weakness of the Japanese yen is another key factor driving GBP/JPY higher. Investors remain cautious about the potential economic consequences of President Donald Trump's new tariffs on raw material imports, adding further uncertainty to global markets. Meanwhile, positive sentiment in equity markets has reduced demand for safe-haven assets such as the yen.

However, expectations of a rate hike by the Bank of Japan (BoJ), reinforced by strong Producer Price Index (PPI) data, could limit aggressive yen selling.

Despite this, the Bank of England's (BoE) gloomy outlook may also cap further GBP/JPY gains. Last week, the BoE lowered its 2025 GDP growth forecast from 1.5% to 0.75%, with Governor Andrew Bailey reiterating the likelihood of further rate cuts this year.

To confirm a trend reversal from bearish to bullish, GBP/JPY needs sustained buying pressure above 193.00. However, as daily chart oscillators have yet to enter positive territory, further upside potential remains limited for now.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Pair Overview – April 3. The Market is Tired of Trump's Tariffs

The GBP/USD currency pair continued to trade in a total flat on April 2. What caused the dollar to stop falling? After all, Trump announces new tariffs or teases upcoming

Paolo Greco 06:10 2025-04-03 UTC+2

EUR/USD Pair Overview – April 3. Trump's Tariffs: Not As Simple As It Seems

The EUR/USD currency pair once again spent most of Wednesday virtually motionless. Even in the chart below, it's clear that recent volatility is low and decreasing. Strangely enough, this

Paolo Greco 06:10 2025-04-03 UTC+2

GBP/USD: Optimism from the British Minister and the Risk of Long Positions

The GBP/USD pair is holding firm ahead of Trump's expected tariff announcement. On Tuesday, the pound reached a weekly low of 1.2878, only to sharply reverse and return to 1.29

Irina Manzenko 01:06 2025-04-03 UTC+2

XAU/USD. Analysis and Forecast

Gold continues to rise as investors remain concerned about U.S. President Donald Trump's aggressive trade policy and its impact on the global economy. In addition, ongoing geopolitical tensions serve

Irina Yanina 13:22 2025-04-02 UTC+2

AUD/USD: Analysis and Forecast

Today, the AUD/USD pair is showing positive momentum, rebounding from nearly a four-week low. Support has come from the Reserve Bank of Australia's less "dovish" stance, with the central bank

Irina Yanina 12:25 2025-04-02 UTC+2

Markets May React to New U.S. Tariffs with Growth—But Under One Condition... (GBP/USD Downside and USD/CAD Upside Possible)

The day Donald Trump declared "Liberation Day" has arrived. Markets are bracing for the U.S. to introduce comprehensive and large-scale tariffs on its trade partners and potential retaliatory measures from

Pati Gani 09:51 2025-04-02 UTC+2

The Market Needs Proof

It's too late to be afraid. Rumors are circulating in the market that the White House may implement a universal 20% levy instead of reciprocal tariffs—pushing the average import duty

Marek Petkovich 09:16 2025-04-02 UTC+2

What to Pay Attention to on April 2? A Breakdown of Fundamental Events for Beginners

There will be very few macroeconomic events on Wednesday, but yesterday showed us that even a large number of macro reports do not always trigger significant movement—even within

Paolo Greco 06:25 2025-04-02 UTC+2

GBP/USD Pair Overview – April 2: The Pound Still Stuck in Place

The GBP/USD currency pair continues to trade in a flat range. On the 4-hour timeframe, this is a classic flat; on the lower timeframes, it looks more like a "swing."

Paolo Greco 05:14 2025-04-02 UTC+2

EUR/USD Pair Overview – April 2: The Dollar Gets Unlucky Again

The EUR/USD currency pair continued trading sluggishly and reluctantly on Tuesday. The market continued anticipating new tariffs from Donald Trump, even though the macroeconomic background was very strong yesterday. While

Paolo Greco 05:13 2025-04-02 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.