The currency pair remains range-bound amid Bank of Japan hawkish expectations and intervention concerns supporting the yen.
The GBP/JPY cross traded directionless in early European trading on Thursday, hovering around 218.15-218.20 after holding above its weekly low. Sterling bulls showed hesitation as market participants weighed the potential for Bank of Japan intervention and hawkish monetary policy bets supporting the yen.
The pair has struggled to break out of its recent range, reflecting uncertainty over the BoJ’s next moves and broader risk sentiment. Earlier this week, the yen found support from speculation that Japanese authorities could step in to stabilize the currency if weakness persists.
No immediate market reaction was observed, with traders awaiting further cues on monetary policy from both the BoE and BoJ.