GBP/JPY tumbled back to 203.00 as markets suspect continued market intervention.
The Yen soared a full percent against the Pound Sterling on Wednesday.
This follows last week’s 2% sudden decline and a surge in BoJ spending.
GBP/JPY continued a pattern of sharp declines on Wednesday, tumbling over a full percent on the day as markets continue to suspect further direct intervention spending in an attempt to bolster the battered Yen.
According to reporting by Bloomberg, it is suspected that the Bank of Japan (BoJ) overspent on market operations to the tune of ¥2.14 trillion last Friday after week-on-week current account figures wildly overclocked money broker forecasts. No official statements from Japanese officials are expected, but if Wednesday’s extended downswing and last Friday’s Yen surge were a result of policymakers stepping into FX markets, it would represent the third and fourth instances of Yen defending just in 2024.
The Yen remains a deeply bearish currency that has become a sell-side favorite across the global fx markets. Even the Guppy’s -2.44% five day decline leaves GBP/JPY trading at 16-year highs, and direct market intervention is becoming increasingly expensive for Japan, a country with an already hefty debt ratio.
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