BoJ Rate Hike Triggers Pound Rally Against Yen

The Bank of Japan's interest rate hike to 1.25% on Friday led to a rally in the Pound against the Yen, with GBP/JPY climbing above 209.50 and touching its highest level in nearly two weeks.

The 7-2 vote in favor of the rate increase was seen as less aggressive than expected, which contributed to the weakness in the JPY.

Market participants are closely watching the post-meeting press conference for additional guidance on the timing and pace of future tightening steps.