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What chance now for GBP/JPY to reach 200?

Last week the Pound versus the Japanese Yen rose to a new 2024 high when it reached 188.92. That was also its highest level since August 2015. The high back then, some 9 years ago, was set around 195.25. That seems like the next important level for the Pound and of course thereafter we have the key psychological level at 200. There can be no doubting the interest rate differential between UK rates at 5.25% and Japanese rates at -0.10% has supported the carry trade on this pair for a long while now. The shake out from above 188, to below 180 seen at the start of this year has now been reversed and that new 2024 high has since been set in place. The GBP/JPY closed on Friday at 188.19. So, far today it has struggled to make any headway though and has remained for the most part below that Friday close. The low seen so far today has been set at 187.75. Leaving aside the price action today, the prospect of the Pound pressing closer to 195 and perhaps 200 is still live over time, provided there is no further shake out in that carry trade. The BOE has it within its power to endorse or detract from that later this week. The GBP/JPY is currently trading at 187.78

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