GBP/JPY Plunges to Six-Month Lows as Hawkish Comments Boost Yen

The British Pound (GBP) has declined sharply against the Japanese Yen (JPY) in recent days, reaching six-month lows at around 209.20.

This downward trend is attributed to hawkish comments from a Japanese official, Takuji Aida, who now expects the Bank of Japan (BoJ) to raise interest rates at its next meeting and another hike by January next year.

Aida's views follow similar ones from BoJ committee member Hajime Takata last week, adding to pressures on the Yen.

Technical analysis suggests that the GBP/JPY pair is testing the neckline of a large Head & Shoulders pattern at 209.20, with momentum indicators indicating persistent downside pressure.