The British pound remained range-bound against the Japanese yen on Monday, trading near the 189.00 mark as persistent risk-off sentiment and technical weakness continued to weigh on the pair. The move reflects investor caution amid global uncertainty, with safe-haven flows favoring the yen and limiting upside for sterling.
GBP/JPY held around 189.10 in early trading, unable to break decisively in either direction as traders grappled with mixed macroeconomic signals and heightened geopolitical tensions. The yen benefited from renewed risk aversion, driven by cautious sentiment in equity markets and lingering concerns over global growth prospects.
GBP/JPY 1-D Chart as of April 22nd, 2025 (Source: TradingView)
Despite the lack of major UK economic data, the pound remains under pressure due to dovish expectations surrounding the Bank of England. With inflation gradually easing and signs of economic softness emerging, investors anticipate that the central bank could lean toward a more cautious policy stance in the coming months.
The yen, meanwhile, continues to find support from its safe-haven status, even as the Bank of Japan maintains a relatively loose monetary policy. In volatile markets, traders often favor the yen during periods of uncertainty, a dynamic that has limited GBP/JPY’s ability to mount a meaningful recovery.
Technical indicators point to a bearish bias, with the pair struggling to reclaim levels above 190.00. Resistance remains firm near that threshold, while support around 188.50 is being closely watched. Unless broader sentiment improves or UK data surprises to the upside, downside risks may persist in the near term.
For now, market direction will likely depend on shifts in risk appetite, along with updates from central bankers and incoming macroeconomic data. As investors remain on edge, the pound may continue to tread water against the yen, with momentum still favoring cautious positioning.
