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GBPJPY Bears in Sight as Japan Mulls Currency Intervention

Short
British Pound / Japanese Yen (OANDA:GBPJPY)  
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OANDA:GBPJPY   British Pound / Japanese Yen
Trend Analysis Chart Patterns Wave Analysis gbpjpyshort japaneseyen GBP intervention bankofjapan USD usdx JPX
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trendanalysis chartpattern waveanalysis gbpjpyshort japaneseyen gbp intervention bankofjapan usd usdx jpx

Bearish GBPJPY as Japan's key economic ministers warn of currency intervention

Japan's key economic ministers have warned of currency market intervention, keeping investors wary of a further sell-off in the yen and weighing on the GBPJPY exchange rate.

The yen has weakened sharply against the dollar in recent months, hitting its weakest level in nearly a year on Monday. This has been driven by a number of factors, including the Bank of Japan's commitment to ultra-low interest rates, while the US Federal Reserve has been raising rates aggressively.

The recent warning from Japanese ministers has raised the prospect of further intervention to weaken the yen. This would be bad news for the GBPJPY exchange rate, as it would make Japanese exports more competitive and make British imports more expensive.

As of October 10, 2023, GBPJPY is trading at 182. If Japanese authorities do intervene to weaken the yen, this could push GBPJPY down towards 175 or even lower.

Traders should be cautious of long positions in GBPJPY in the near term, as the risk of intervention is high.
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