GBP/JPY - Pound-yen, daily - 03/01/2024 (GMT)

Despite the British economy also being in a technical recession, the overall fundamentals of pound-yen are somewhat unclear. Mostly positive recent data from the UK, including mortgage approvals and business activity, might suggest a quick exit from a shallow recession. Meanwhile the Bank of England is currently expected to start loosening policy in August, slightly later than the Fed and the ECB.
The GBPJPY has actually reached a new high in February, which makes selling here probably more risky compared to USDJPY, although the technical picture is pretty similar apart from that. There’s buying saturation, and ATR here has also declined consistently. Unlike for dollar-yen, though, there’s no major data coming out from the UK next week, so TA, volume, and sentiment will probably remain the main drivers.