Pound Rebounds Against Yen Amid BoJ Hopes and Oil Price Pressures

The British Pound has made gains against the Japanese Yen on Thursday, despite expectations that the Bank of Japan could raise interest rates next month. The wide interest-rate gap between the UK and Japan keeps the British Pound in favor.

According to technical analysis, GBP/JPY holds above key daily moving averages, with initial resistance seen at 216.50. The cross has rebounded from the 200-day Simple Moving Average (SMA) and climbed above the 100-day and 50-day SMAs, reinforcing a constructive near-term bias.

The Japanese Yen is under pressure due to higher oil prices linked to the US-Iran standoff, as Japan relies heavily on imported energy from the Middle East. Broader concerns over government spending and high public debt also weigh on the currency.