British Pound/Japanese Yen (GBP/JPY) – Market Update (2025‑11‑06)
Current level
- The GBP/JPY cross traded around 201.00 during the Asian session, following a rebound from the daily low of 199.61.
- At the close of the previous session the pair was near 200.90, after a 0.5 % gain.
Bank of England policy
- The Bank of England (BoE) left the policy rate unchanged at 4 % in its November meeting.
- Governor Andrew Bailey confirmed that inflation data remain encouraging and that the central bank expects rates to follow a gradual decline.
- The decision was reached by a 5‑4 vote, with four members favouring a 25‑basis‑point cut; the overall stance remained unchanged.
Market reaction
- The GBP has traded slightly firmer against the JPY since the BoE decision, but the cross remains largely flat, oscillating in a narrow band.
- Support appears to be near the one‑month low that was set on Wednesday; losses below 200.00 have largely been contained.
Technical backdrop
- The pair sits just above the 50‑day simple moving average (SMA) of 200.97.
- A rebound to 201.10 earlier in the day was limited to a gain of about 0.53 %.
- The 52‑week high (205.308) and low (184.417) indicate a long‑term range in which the current level is approaching the upper quartile.
Additional context
- The Japanese yen has risen on the back of September wage growth of 1.9 %, which supports a tighter stance at the Bank of Japan.
- The BoE’s unchanged rate and the Bank of Japan’s indications of a potentially tighter stance suggest that the GBP/JPY cross may remain constrained near 201.00 in the short term.
Implication for traders
- With the BoE rate decision aligned with expectations, there is limited upside potential for the GBP at present.
- Traders may look for opportunities to capture minor intraday moves around the 201.00 level, while remaining wary of a reversal that could push the pair back below 200.00.
