GBP/JPY Bounces Off One-Month Low on Upbeat UK Data, but Risks Remain

The GBP/JPY cross extended its decline for a third consecutive session on Friday, but managed to find support just ahead of a one-month low set the previous day. The bounce was triggered by the release of better-than-expected UK economic data, which provided a temporary lift to the British pound.

Despite the short-term relief, the pair is not out of the woods yet. Analysts caution that the broader trend remains fragile, with sellers likely to re-emerge if the data-driven momentum fades. The Japanese yen continues to draw support from safe-haven flows and expectations of further policy normalization by the Bank of Japan.

Traders are now watching for further UK data and remarks from Japanese officials for directional cues. A sustained move below the recent low could open the door to deeper losses, while a break above near-term resistance would be needed to confirm a reversal.