The British pound struggled against the Japanese yen, with GBP/JPY remaining in bearish territory below the 190.50 resistance level. A combination of yen strength and pound weakness kept the pair under pressure as investors reacted to shifting global risk sentiment and diverging central bank policies.
The Bank of Japan’s cautious stance on potential policy adjustments has provided some support for the yen, as traders remain alert to any signals of a gradual shift away from its ultra-loose monetary policy. Meanwhile, the pound lost momentum amid concerns over the Bank of England’s rate path, with markets questioning whether further tightening is likely given recent economic data.
Risk aversion in global markets has further weighed on GBP/JPY, as investors moved into safe-haven assets, boosting demand for the yen. The pound, typically sensitive to risk sentiment, struggled to gain traction as uncertainty surrounding global economic conditions persisted.
Looking ahead, traders will monitor upcoming BoE and BoJ commentary, along with key UK and Japanese economic data, for signs of policy divergence that could influence the pair’s next move. A sustained break below key support levels could reinforce the bearish outlook, while any signs of renewed risk appetite might offer limited relief for the pound.
For now, GBP/JPY remains in a downtrend, with sellers maintaining control as long as the pair stays below 190.50. A failure to reclaim this level could keep pressure on the pound, leaving the pair vulnerable to further downside.
