Where to next for USD/JPY, GBP/JPY and GBP/USD following BOE and BOJ rate decisions?

Article written by IG Senior Market Analyst Axel Rudolph

USD/JPY puts pressure on 10-month high

The US dollar is on an upward trajectory for the 10th consecutive week, with the Federal Reserve’s hawkish stance pausing and the Bank of Japan holding firm on its dovish stance. / There is no brake on the rise of the yen. At this morning’s monetary policy meeting, the central bank kept short-term interest rates unchanged at -0.1% and the yield on 10-year bonds at around 0%.

USD/JPY is rapidly approaching Thursday’s 10-month high of 148.46 yen. However, once this level is exceeded, the 150.00 yen area will once again be at risk, and the Bank of Japan may intervene at that point.

Immediate upside pressure will remain while USD/JPY remains above the July-September uptrend line of 147.51 yen and Thursday’s low of 147.33 yen. Although supported by this small area of ​​support, the uptrend from July to September remains intact.

USD/JPY daily chart

Source: IG

Japanese consumer price index USD/JPY is expected to rise due to the data and the Bank of Japan’s decision this morning. To find out what else influences this unique currency pair, check out our comprehensive guide below.

GBP/JPY aims to recover from 6-week low

After the BOE left its policy rate unchanged at Thursday’s monetary policy meeting, the pound/yen pair accelerated its decline, hitting a six-week low of 180.81 yen, close to the August low of 180.46 yen.

On Friday, the cross rebounded from a low of 180.81 yen as Japan’s annual inflation rate fell slightly in August to 3.2%, its lowest level in three months, and the Bank of Japan reiterated its dovish stance by leaving policy interest rates unchanged. Trying to.

There is some nice resistance between the mid-September low of 182.52 yen and the 55-day simple moving average (SMA) of 183.04 yen.

GBP/JPY daily chart

Source: IG

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GBP/USD trades at 6-month low

Sterling continued to fall to a six-month low against the dollar following the Bank of England’s (BOE) decision to keep interest rates unchanged at 5.25%.

A fall to Thursday’s low of $1.2235 would target the mid-March high and March 24 low of $1.2004 to $1.2191.

Minor resistance is currently located at the May low of $1.2309 and has moved significantly higher in line with the 200-day simple moving average (SMA) to $1.2435. Although below that, the bearish trend remains firmly entrenched.

GBP/USD daily chart

Source: IG