Forecast of the movement of the pound yen

pound yen at the basic level

GBP/JPY rose slightly during today's trading, after yesterday's strong declines, especially for the pound sterling, as the British unemployment rate rose to its highest level since 2020, and the number of jobs decreased by 109 thousand jobs, which led to a rapid decline for the Pound-Yen pair.

On the other side of the Japanese economy, Japan is still experiencing a gradual economic recovery despite Trump's tariffs, and trade disputes continue to cast a shadow over the demand outlook.

BOJ policymakers are worried that core inflation will remain below their 2% target, after the country barely emerged from deflation recession just a few years ago, it seems that the BOJ is still on track to raise the interest rate two more times by 25 basis points, which will eventually raise the overnight target interest rate to 1%.

pound yen at the technical level

The pair rebounded from strong resistance levels considered a supply zone near the levels of 196.40 and the pair retreated from them strongly, down to the levels of 194.80, and then made some upward corrections.

The pair is now a candidate for some pullbacks towards the uptrend levels on the four-hour frame at 194.30 and before that an initial target near the levels of 195.30.

This scenario fails if the 196.60 levels break higher.