GBP/JPY, the pair of the week

GBP/JPY ended the week with a gain of almost a thousand pips and it marked the first weekly rise since late May. A combination of a weak Japanese yen, that suffered one of the worst weekly declines in years with a strong bounce in the pound, that had the best 5-day performance since 2009, send the pair sharply to the upside.

The pair fell on Friday, trimming weekly gains. It peaked during the Asian session at 143.22, the highest level since the results of the Brexit referendum but then turned to the downside. Near the end of the week, it was trading around 139.40/50.

Despite falling almost 400 pips from daily highs, it is still considerably higher for the week, making the first significant recovery after falling on July 5 to 128.70, the lowest level since November 2012.

After the BoE, before the BoJ

The pound received an extra impulse after the Bank of England left interest rates unchanged on Thursday and also amid an improvement in market sentiment. The yen suffered from the risk on environment and also, it dropped sharply affected by speculation of more stimulus in Japan, after Sunday’s elections.