GBP/JPY Tumbles on Inflation Fears and Central Bank Jitters

The GBP/JPY cross-pair is experiencing a slight rise, trading at around 208.30 as investors shift their risk appetite to the sour side due to increasing energy prices and bond yields.

This trend change has some analysts warning of a possible reacceleration of inflation ahead of three major central bank monetary policy decisions.

The Pound Yen is currently consolidating near its monthly lows of 207.00, following intervention by Japanese authorities in the FX markets.

Technical analysis suggests that if the cross tumbles below 207.00, it could lead to a decline to the November 14 swing low of 202.34 and potentially even the 200.00 milestone.