GBP/JPY backs off from above 200

Earlier this morning, the surge to above 160 in the USD/JPY delivered a corresponding gain across all the major Yen crosses. The focus of this update is the GBP/JPY. Many weeks back updates here highlighted the potential for the weak Yen to deliver a move towards 200, especially if the price lifted above 195.88. Well of course it already did that last week and the close on Friday at 197.79 was clear proof of that. The charge above 160 earlier this morning in the USD/JPY helped the GBP/JPY reach a high at 200.54. That is the highest level of the GBP/JPY since Q3 2008. However, if you think that is really expensive, then the reader is pointed to where exactly this cross has come from over the past 40 years. Back in the 1980s the GBP/JPY was above 500 and even higher before that. So, without suggesting it will get back above the highs seen in 2008, it is worth noting that was above 250 back then. The low since the high this morning has been set at 194.51. The GBP/JPY is currently trading at 196.70