GBP/JPY Drops Below 215 on UK Inflation Miss, Intervention Fears
The British pound weakened sharply against the Japanese yen, falling below 215.00 after softer-than-expected UK consumer inflation data. The move snapped a three-day winning streak for GBP/JPY and revived speculation about possible Japanese intervention.
UK consumer inflation figures released on Wednesday came in softer than anticipated, triggering heavy selling in the GBP/JPY cross. The pair broke below the 215.00 level, ending a three-day rally.
The decline also reflects renewed fears of Japanese intervention in the currency market. Traders are wary that authorities may step in to stem yen weakness, which added downward pressure on the pound.
As of the latest data, GBP/JPY remains under pressure, with market attention now turning to further UK economic releases and any verbal or actual intervention from Japan.
Source: FXStreet Forex News