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Good morning, traders and enthusiasts! The financial world is buzzing this Friday, and one pair, in particular, is capturing significant attention: GBP/JPY. After a dynamic week, the cross is showing remarkable resilience, attracting a fresh wave of dip-buyers during the Asian session today.
Yesterday saw a late pullback from levels just north of the 209.00 mark—a territory not seen since August 2008. Yet, rather than consolidate lower, the pair has managed to stall this retracement, signaling strong underlying bullish sentiment. This robust performance comes hot on the heels of the Bank of Japan’s widely anticipated 25 basis point rate hike.
While the BoJ’s move was largely priced in by the market, the sustained strength in GBP/JPY suggests that traders are focusing on the yield differential and the broader economic outlook for both economies. With the pound continuing to demonstrate strength and the yen still grappling with the implications of a gradual exit from ultra-loose monetary policy, the path of least resistance for this pair appears to be upward for now.
Keep a close eye on upcoming economic data and central bank commentary, as these will be crucial in determining whether GBP/JPY can maintain its impressive climb and potentially challenge even higher multi-year highs. It’s an exciting time for forex markets, and this pair is certainly one to watch!
Source: Original Article
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