British Pound versus Japanese Yen on 2025‑12‑11
The GBP/JPY cross moved lower during the early European session, trading around 208.40 after a brief climb to the mid‑208 range. The decline was largely driven by strengthening expectations that the Bank of Japan (BoJ) will raise its policy rate next week. Market sentiment has shifted to price a BoJ rate hike to 0.75 %, according to a recent Reuters survey cited in the FXStreet report.
At the same time, the Bank of England’s policy stance remains a point of focus. The BoE is expected to weigh the effects of falling inflation and sluggish growth on future rate decisions. Divergent expectations between the BoJ and BoE have capped the pair’s upside, keeping it well below its 52‑week high of 208.928 (as of 2025‑12‑08).
Key Support and Resistance
- Support: The cross has found firm backing near the 208.00 level. Traders who were unable to push the pair higher have been buying at this support zone, but the lack of follow‑through has kept the currency negative on the early session.
- Resistance: The 52‑week high of 208.928 remains a significant barrier. A sustained rally above this level would signal a strong shift in market sentiment toward the pound.
Recent Technical Context
- Close price (2025‑12‑09): 208.634
- 52‑week low (2025‑04‑08): 184.417
- The pair has remained within its key moving averages, suggesting a neutral technical setup. The recent dip‑buyers around the 208.00 mark indicate that the market is awaiting further confirmation from the BoJ’s upcoming policy meeting.
Market Outlook
With expectations of a BoJ rate hike, the yen is likely to stay resilient against the pound in the short term. The pound’s trajectory will depend on the BoE’s decisions, particularly how it balances inflation concerns against economic growth. Traders should monitor the BoJ’s policy announcement next week and the BoE’s comments from Governor Bailey for any indications of policy shifts that could lift or lower the GBP/JPY pair.
