- GBP / JPY is still on track to close the second day in a row lower.
- BoE and BoJ will have policy meetings later in the week.
The pair GBP/JPY It fell to a five-day low of 150.79 on Tuesday, but erased most of its daily losses in the second half of the day. At time of writing, the pair is on track to close the second day in a row in negative territory, shedding 0.12% on the day at 151.42.
With an eye on BoE and BoJ policy announcements
However, the pair’s recent action appears to be a partial correction from the latest uptrend, which pushed the price up to its highest level since April 2018 at 152.26 on Friday. Investors may also be looking to post some gains ahead of Bank of England and Bank of Japan policy meetings later in the week.
Meanwhile, the UK FTSE closed with a strong 0.8% daily gain on Tuesday and helped GBP / JPY reverse its direction.
Earlier in the day, Bank of England (BoE) Governor Andrew Bailey said that the BoE will continue its bond purchases in 2021. Regarding the inflation outlook, Bailey acknowledged that there could be an inflation outbreak in the short term due to support measures but noted that they do not expect it to exceed the 2% threshold.
No macroeconomic data from Japan will be released on Wednesday and GBP / JPY is not expected to make a decisive move in either direction.
Technical levels
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