The GBP/JPY reaches new annual maximums above 199.85 in the face of the generalized weakness of the Yen

• The pound is appreciated for the weakness of the Yen and reaches new maximums of the year above 199.85.
• The appetite for risk, political uncertainty and the threat of higher tariffs are hitting the Yen.
• The softest inflation data in Japan questions a greater hardening of the BOJ.

The pound continues to advance for the second consecutive day while the Japanese fight, beaten by a mixture of lack of progress in commercial negotiations with the US, growing political uncertainty and inflationary trends downward, which complicate the monetary policy perspective of the BOJ.

The generalized weakness of YEN and the positive risk of risk observed on Friday contribute to extending the pound of the sterling pound, which has reached levels just above the maximum of June 9, in 199.83, although it has not yet confirmed above it.

The Japanese Yen is under pressure, with the increasingly cautious investors about the result of the elections to the Chamber of Directors of this weekend. The latest surveys suggest that the ruling coalition of Prime Minister ishiba will probably lose its majority in Parliament, which will lead to political uncertainty.
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Apart from that, commercial negotiations with the US show a lack of progress, feeding investors’ anxiety about the possibility of facing 25% tariffs from August 1. Such taxes are a significant threat to an economy strongly dependent on trade, such as Japan, and additional weight on the JPY.

Finally, the recent data of the consumer price index revealed that the underlying inflation was softened to 3.3% from the maximum of 29 months of 3.7% in the lowest rice prices. General inflation modeled its year -on -year reading at 3.3% from 3.5% in May, which doubts a greater hardening of the BOJ.