Created on September 18, 2026

The GBP/JPY pair, like so many others, is going to be waiting to see what the Japanese have to say during the press conference early Friday morning.

GBP/JPY

The British pound has fallen during the trading session here on Thursday as the Bank of England chose not to raise rates. Although the Bank of England sounded like they were still relatively hawkish, it looks like the markets do not believe it. As a result, the British pound has fallen against most currencies.

Overall, this is a market that continues to see questions asked of the Bank of Japan and what they may be doing at this juncture. After all, traders are trying to figure out whether or not they remain very hawkish, or if this is a one-and-done type of scenario.

The area just below current trading, right around the 206 yen level

This is a level that is important. It has been supported multiple times, and after all of this intervention that we have seen in the Japanese yen, this area is going to be watched very closely. After that, you have the ¥205 level. Anything below there, I think, solidifies the downtrend.

Overall, I think this is a scenario where the interest rate differential will continue to be a driver of this pair higher eventually. But we need to get through the Bank of Japan first, and we also need to see whether or not they blink. If they blink or sound like they are not completely dedicated to raising rates on a relatively steady basis, that could work against the value of the yen.

Holding this pair to the upside also pays you at the end of every day, and I think that is something that cannot be argued. It does not mean that it has to rally now, but I will be watching how it behaves after the announcement for the first few hours. If we can stay above ¥206, I think that is a good sign.

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Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire