GBP/JPY: Race back to 200.000?

On Monday, the yen dropped to 160.000 per dollar, marking its lowest level since 1990, before rebounding more than 3% to 154.5 per dollar. This rebound was suspected to be the result of intervention by Japanese authorities.

According to reports from Bloomberg, the Bank of Japan (BoJ) likely injected ¥5.5 trillion into the currency markets after discrepancies were noted in the BoJ's operations report on Tuesday, where market forecasts didn't align with reported current account figures.

Both the GBP/JPY and USD/JPY pairs are gradually recovering on the charts. The USD/JPY is testing levels above 157.500, while the GBP/JPY is eyeing 197.00.

Both pairs could keep on advancing if the forthcoming US data continues to surprise. Notably, the Fed taking a hawkish tone after its FOMC decision on Wednesday and jobs data due on Friday.

The GBP/JPY's recent peak at 200.60 remains a key target for traders despite potential intervention by the BoJ.

Looking forward, market sentiment could appear bullish, with attention focused on key levels such as the 193.600 resistance-turned-support and the 10-day SMA.