• GBP/JPY followed other Yen pairs lower on Tuesday.
• The Yen is extending a near-term recovery after successive “Yenterventions”.
• Key UK and Japanese economic data due in the back half of the trading week.

GBP/JPY extended into further losses on Tuesday as the Japanese Yen continues a broad-base recovery sparked by a series of “Yenterventions” by the Bank of Japan (BoJ) and Japan’s Ministry of Finance (MoF) to try and prop up the beleaguered Yen. The synthesized Japanese Yen Index (JXY), a basket measure of the Yen’s overall performance against the other major global currencies, has fallen 12.62% peak-to-trough in 2024, and is down a staggering 37.51% since a peak in late 2020.

Guppy traders have eased off of the buy button in the face of increasingly-expensive direct market interventions on behalf of the Yen, but looming key datasets for both the UK and Japan could easily spark fresh moves in either direction. UK S&P Global/CIPS Purchasing Managers Index (PMI) activity figures are due Wednesday, with Japanese Tokyo Consumer Price Index (CPI) inflation figures slated for early Friday.