Chart of the day - GBPJPY (22.09.2022)

9:42 AM 22 September 2022

The Bank of Japan decided to leave interest rates and other monetary policy settings unchanged at a meeting today. Such a decision was expected and no one even thought that Bank of Japan could pull the trigger and hike rates. As such, today's BoJ meeting was largely a non-event. Comments from Japanese deputy finance minister Masato Kanda, who is also considered Japanese top FX diplomat, attracted much more attention. Namely, Kanda said that his country did not intervene in the FX markets but is ready to do so if needed. He also said that if it comes to this, it would most likely be "silent intervention".

We did not have to wait long for the intervention and it definitely was not a silent one. USDJPY slumped at 9:00 am BST as the Bank of Japan and Japanese government intervened by buying JPY against USD, leading to an around 100 pip drop in the pair. Downward move deepened further after Kanda confirmed at 9:15 am BST that intervention indeed took place. Kanda said that the government is concerned about excessive depreciation of JPY and will monitor markets with a high sense of urgency. The pair is now trading more than 300 pips off a daily high. This was the first direct intervention in the FX market to prop up JPY since 1998.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

While the attention is centered on USDJPY, as this is where intervention took place, the situation on the other JPY-tied FX pairs is also interesting. GBPJPY is one such pair. Taking a look at the chart at D1 interval, we can see that the ongoing pullback on the pair deepened significantly today and the pair is making its way below the 200-session moving average (purple line). This moving average provided support for the pair in recent months (orange circles on the chart) and a break below can hint at potential trend reversal. The pair is expected to remain volatile today as Bank of England is set to announce its rate decision at 12:00 pm BST.

Source: xStation5

Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence