GBP/JPY Recovers Lost Ground as Intervention Effect Wears Off

The GBP/JPY pair has recovered its losses from the intervention-led pullback in late July. The sharp decline was triggered by Japan's fiscal outlook and wide interest-rate gap with other major economies, which put pressure on the Japanese Yen.

However, the impact of the joint US-Japan intervention proved short-lived, as the underlying factors remain unchanged. As a result, the technical outlook for GBP/JPY stays tilted to the upside.

The pair extended its steady recovery on Tuesday and has now recouped almost all its losses from the intervention. At the time of writing, it trades around 217.10, up 0.12% on the day.