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GBP/JPY extends gains to test 194.25, favoured by a positive market mood

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GBP/JPY extends gains to test 194.25, favoured by a positive market mood

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New update 2025.05.27 15:51
GBP/JPY extends gains to test 194.25, favoured by a positive market mood

update 2025.05.27 15:51

  • The Pound appreciates on risk appetite, bulls are testing the 194.25 resistance.
  • The Japanese Yen eases with long-term bond yields retreating.
  • The Japanese Ministry of Finance is considering reducing the bond selling program due to concerns about a debt crisis.

The Pound is trading higher for the second consecutive day on Tuesday, with the UK market returning from a long weekend on a moderately positive market mood. Trump's decision to delay a 50% tariff on Eurozone products has boosted market sentiment.

The positive mood is weighing on the Japanese Yen. The JPY is losing ground against its main peers despite BoJ Governor Ueda's comments highlighting the inflationary risks, which keep hopes of further monetary tightening alive.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.04% -0.00% 0.23% -0.01% 0.12% 0.24% 0.03%
EUR -0.04% -0.06% 0.16% -0.05% 0.00% 0.10% -0.03%
GBP 0.00% 0.06% 0.23% 0.00% 0.04% 0.16% -0.02%
JPY -0.23% -0.16% -0.23% -0.20% -0.09% -0.05% -0.18%
CAD 0.01% 0.05% -0.00% 0.20% 0.11% 0.16% -0.04%
AUD -0.12% -0.01% -0.04% 0.09% -0.11% 0.01% -0.13%
NZD -0.24% -0.10% -0.16% 0.05% -0.16% -0.01% -0.20%
CHF -0.03% 0.03% 0.02% 0.18% 0.04% 0.13% 0.20%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).


Fears of a debt crisis in Japan are increasing

Growing concerns of a debt crisis in Japan are also weighing on the Yen. A recent report suggests that the Ministry of Finance is considering a reduction of super-long bonds issuance for the current fiscal year, as the declining demand from traditional buyers is triggering a significant increase on yields.

The yield of the 30-year note has dropped about 20 basis points over the Asian session to 2.86%. This could increase negative pressure on the Yen.

The UK calendar is light today, and market sentiment might keep the pair buoyed during the next sessions. Bulls are testing the 194.25 resistance area. If that level gives way, the May 13 high, at 196.25 will be exposed. Supports are at Monday's 193.05 low and the 38.6% retracement level, at 191.75.

GBP/JPY 4-hour chart

GBP/JPY 4-Hour chart

Date

Created

 : 2025.05.27

Update

Last updated

 : 2025.05.27

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