The GBP/JPY currency pair is experiencing choppy trading around the 200.00 level, continuing a recent consolidation phase. This comes as both the British Pound (GBP) and Japanese Yen (JPY) grapple with disappointing economic data releases.
Japan’s first-quarter Gross Domestic Product (GDP) contracted by 0.5% quarter-over-quarter, making it increasingly challenging for the Bank of Japan (BoJ) to deviate from its ultra-loose monetary policy. Investors are keenly anticipating the BoJ’s interest rate decision and policy statement due early Friday.
Meanwhile, UK labor data, including Claimant Count Change, ILO Unemployment Rate, and 3-month Employment Change, will be released on Tuesday. These figures could influence the Pound’s trajectory in the short term.
GBP/JPY Technical Analysis: Sideways Movement Prevails
The hourly GBP/JPY chart reveals a sideways movement pattern, with the pair consolidating around the 200-hour Exponential Moving Average (EMA) at 199.38. While the pair has rebounded from recent lows near 197.50, it remains below the multi-decade highs above 200.60.
