Select Language

GBP/JPY rebounds to mid-198.00s as JPY weakens on political uncertainty and risk-on mood

Breaking news

GBP/JPY rebounds to mid-198.00s as JPY weakens on political uncertainty and risk-on mood

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.03 14:13
GBP/JPY rebounds to mid-198.00s as JPY weakens on political uncertainty and risk-on mood

update 2025.10.03 14:13

  • GBP/JPY stages a goodish recovery from a nearly one-month trough touched on Thursday.
  • A positive risk tone undermines the JPY amid political uncertainty and supports spot prices.
  • Hawkish BoJ expectations could act as a tailwind for the JPY and cap the upside for the cross.

The GBP/JPY pair gains strong positive traction on Friday and now seems to have snapped a four-day losing streak to a nearly one-month low, around the 197.50-197.45 region, touched the previous day. The momentum lifts spot prices above mid-198.00s during the Asian session and is sponsored by a broadly weaker Japanese Yen (JPY).

Data released earlier today showed that the Unemployment Rate in Japan rose more-than-expected, to 2.6% in August. This, along with a generally positive risk tone, undermines the JPY's safe-haven status and prompts aggressive short-covering around the GBP/JPY cross ahead of Japan's Liberal Democratic Party (LDP) leadership election on Saturday, October 4th.

The new Prime Minister will influence the trajectory of Japan's fiscal policy, which could further determine the Bank of Japan's (BoJ) policy stance and drive the JPY. Traders have largely priced in Koizumi's victory. If Takaichi wins, it becomes a positive surprise, and the stock market could surge, said Kazuaki Shimada, Chief Strategist at IwaiCosmo Securities.

Meanwhile, BoJ Governor Kazuo Ueda said that the central bank must maintain an accommodative monetary environment to offset various uncertainties on Japan's economic outlook. Ueda, however, reiterated that the BoJ will raise interest rates if the economy and prices move in line with forecasts, keeping hopes alive for an imminent rate hike later this month.

Apart from this, concerns over the UK's fiscal outlook ahead of the Autumn budget in November might hold back traders from placing bullish bets around the British Pound (GBP) and cap the GBP/JPY cross. Hence, it will be prudent to wait for strong follow-through buying before confirming that a one-week-old corrective downfall has run its course.

Traders now look forward to the release of the final UK Services PMI for some impetus. Apart from this, the Bank of England (BoE) Governor Andrew Bailey's speech might influence the GBP price dynamics and contribute to producing short-term trading opportunities around the GBP/JPY cross, which remains on track to register heavy weekly losses.

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 Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.02% -0.01% 0.33% -0.00% 0.04% 0.00% -0.00%
EUR 0.02% 0.06% 0.33% 0.03% 0.09% 0.02% 0.01%
GBP 0.01% -0.06% 0.34% -0.05% 0.00% -0.04% -0.05%
JPY -0.33% -0.33% -0.34% -0.34% -0.30% -0.34% -0.37%
CAD 0.00% -0.03% 0.05% 0.34% 0.07% 0.01% -0.00%
AUD -0.04% -0.09% -0.01% 0.30% -0.07% -0.05% -0.05%
NZD -0.01% -0.02% 0.04% 0.34% -0.01% 0.05% -0.01%
CHF 0.00% -0.01% 0.05% 0.37% 0.00% 0.05% 0.01%

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).


Date

Created

 : 2025.10.03

Update

Last updated

 : 2025.10.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD hovers at 1.1600 as muted CPI data fails to alter Fed stance

EUR/USD is poised to finish the week with losses of 0.21% yet it remains above the 1.16 figure for the third straight day, capped on the upside by key resistance levels after US data might not deter the Fed from cutting rates.
New
update2025.10.25 07:15

USD/CHF Price Forecast: Stays range-bound below 0.8000

The USD/CHF remains subdued on Friday, yet the pair trades below 0.8000 poised to finish the week with modest gains of over 0.25%. At the time of writing, the pair trades at 0.7956m, virtually unchanged.
New
update2025.10.25 05:18

Gold rebounds after softer US CPI data reinforces Fed cut bets

Gold price erases earlier losses, rises over 0.10% on Friday following the release of the September inflation report in the US, which showed that prices climbed but would not deter the Federal Reserve (Fed) from cutting rates next week.
New
update2025.10.25 04:07

AUD/USD holds steady as mixed US data keeps traders cautious

The Australian Dollar (AUD) is virtually unchanged against the US Dollar (USD) on Friday after volatile two-way price action driven by a mix of US macro data.
New
update2025.10.25 03:12

Dow Jones Industrial Average reaches new peak as US CPI inflation boosts rate cut bets

The Dow Jones Industrial Average (DJIA) lumbered into record highs on Friday, posting intraday bids north of 47,300 for the first time ever.
New
update2025.10.25 03:10

Silver price consolidates below $49 on Fed rate-cut outlook

Silver (XAG/USD) eases on Friday, trading around $48.85 per troy ounce at the time of writing, down 0.10% for the day, as the market consolidates below the psychological $49 level.
New
update2025.10.25 01:44

EUR/GBP jumps to four-week high as BoE dovish bets offset strong UK data

The EUR/GBP advances during the North American session, even though Retail Sales in the UK, exceeded estimates but a softer inflation reading increased the odds for further easing by the Bank of England. The cross trades at 0.8744, up 0.74% as it hits a four-week high.
New
update2025.10.25 01:25

USD/JPY extends gains as strong US PMI offsets softer CPI data

The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Friday, with USD/JPY trading around 152.80, up for the sixth straight day.
New
update2025.10.25 00:06

GBP/USD holds steady post-volatile session on UK data, US inflation signals

GBP/USD trades sideways around 1.3325 on Friday at the time of writing, unchanged on the day after a volatile session triggered by multiple economic releases from the United Kingdom (UK) and the United States (US).
New
update2025.10.25 00:01

JPY soft and underperforming G10 in quiet trade - Scotiabank

The Japanese Yen (JPY) is soft, down 0.2% against the US Dollar (USD) and underperforming nearly all of the G10 currencies in overall quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.10.24 23:54

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel