Ella 
GBP/JPY settled around 186.50, its highest level since November 2015.
The monetary policy divergence between the Bank of England and the Bank of Japan is the main driver of GBP/JPY.
The GBP/JPY cross continued to strengthen, jumping towards 186.50 at the start of the week, driven by hawkish bets from the Bank of Japan. Last week, the UK released inflation and wages data for July, which led to expectations that UK inflation would end up at 6% in July, compared to 5.75% expected at the start of the week, making GBP the best end of the week.
On the other hand, dovish bets on the Bank of Japan weakened the yen on news that the Bank of Japan will only consider tightening policy as long as local wage and inflation data are in line with forecasts. In addition, the fragile economic situation in China, which is one of Japan’s largest trading partners, is also pushing the yen lower.
