Investors remain cautious as USD/JPY nears 162.00, a level Tokyo may defend amid widening rate differentials and Fed policy shifts.
The British Pound recovered against the Japanese Yen on Thursday, with GBP/JPY trading at 213.40 after dropping to near 212.50 the prior day. The move follows broader Yen weakness driven by the Bank of Japan’s ultra-low rates compared to other major central banks.
Market focus remains on USD/JPY, which approached 162.00, a threshold Japanese officials have signaled could trigger intervention. A recent meeting between Japan’s finance minister and the U.S. Treasury underscored concerns over excessive volatility, with joint action possible if the pair breaches its 40-year high of 162.95.
Technical indicators for GBP/JPY show neutral momentum, with mild upside pressure near 213.50. The Relative Strength Index hovers near 50, while the MACD remains marginally positive, suggesting limited directional conviction.