Great Britain Pound vs Japanese Yen
GBP JPY is a very volatile cross rate with regard to USD due to high business activity between Great Britain and Japan. The influence of US dollar on the pair dynamics is average. Two highly developed economies conduct active mutual trade, which produces high intensity of forex GBP JPY trading. The central banks of Japan and Great Britain provide mid-term dynamics. Traditionally, pound is considered as an expensive asset because the policy of the Bank of England is very tough, and the Bank of Japan has, for many years, fought deflation using soft monetary methods.
Japan keeps the exchange rate near zero mark, and while injection of yen into the financial system for supporting of exporters continues, forex GBP JPY pair retains its tendency to growth in the long-term perspective.
The following fundamental factors influence the current British pound Japanese yen rate forecast: the main economic indicators of Great Britain, Eurozone, the USA, and Japan (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, European and American financial regulators; Eurozone's political events, ECB's and the Bank of England's statements and monetary policy events; Statements made by the Bank of Japan and the Ministry of Finance of Japan, currency interventions of Japanese yen. Demand for Japanese goods on the European market; Prices for energy resources and Asian stock indexes (Hang Seng, KOSPI, Nikkei 225, SET50); European stock market indexes FTSE 100, DAX, CAC 40.
GBP JPY currency pair responds to political and economic events actively, speculative reversals on the news are characteristic; therefore the asset does not take technical forecasts well and requires tough money management. It is not recommended for beginner traders.
High liquidity of the British pound Japanese yen Forex pair is actively supported by market makers, especially at the European and Asian sessions. Main volume: exchange and speculative transactions by the central banks of England and Japan, large commodity and short-term option contracts.