Ella 
GBP/JPY attracted new sellers during Friday’s Asian session, slipping further below the 188.00 mark and hitting a three-and-a-half-week low in the past hour.
It was the third day of losses in the previous four days as the Japanese yen (JPY) continued to be supported by hawkish expectations from the Bank of Japan (BOJ), with some follow-through buying. In fact, Bank of Japan Governor Kazuo Ueda reiterated earlier this week that the central bank will continue to raise interest rates if the economy and prices perform as expected.
In addition, Bank of Japan board member Hajime Takata said on Thursday that if we can confirm that companies will continue to increase capital expenditures, wages and prices, we must adjust one more level of monetary conditions. Separately, data released on Thursday showed that Japan’s real wages unexpectedly rose for a second consecutive month in July, raising expectations that the Bank of Japan will raise interest rates again in 2024.
Meanwhile, U.S. employment data released this week were mixed, raising concerns about the health of the economy. This, along with ongoing geopolitical tensions, which has eroded investor appetite for riskier assets, is seen as another factor supporting the safe-haven yen and puts additional pressure on the GBP/JPY trade amid a lack of bids in the pound. Downward pressure.
Following the recent decline, spot prices confirmed an intraday break through the 189.00 horizontal support, with a subsequent move below the 188.00 mark favoring bearish traders. Additionally, the oscillators on the daily chart remain in negative territory and have not yet entered oversold territory. This shows minimal downside resistance for the GBP/JPY cross, supporting the prospect of further losses.
