This Japanese Yen report will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer.

Currency Pair% ChangeDifference on £200,000
GBP/JPY1.5%JPY 420,000
Demand for the Japanese Yen

World events drive demand for the Japanese Yen

Japan, which is the world’s third largest economy, showed unexpected signs of strength over the summer. Business confidence recently came out at a 25 year high and the economy has just posted its longest unbroken period of growth in more than a decade.

Over the last two weeks however there have been large swings in the value of the JPY as the title of safe haven has been put to the test. Trading GBPJPY over the fortnight has changed by nearly 2% which has been driven by the flow in and out of the JPY as global events have dramatically changed the demand for the safe haven currency.

Even when North Korea’s missile flew over Japan the Yen remains in demand as investors scrambled for the havens amid escalation fears of conflict in the region. The storms that have hit the Americas have driven funds out of the USD and into the Yen further too. If the situation in the Korean peninsula continues to deteriorate, jittery investors could continue to snap up the Yen, which is something that clients with exposure to the currency should keep at the forefront of their minds.

GBP/JPY exchange rate forecast for next week

Moving forward I personally expect the volatility to remain meaning the timing of a GBPJPY transfer will continue to be very important. I generally expect the JPY to get more expensive as the domestic Brexit talks continue to impact the value of the Pound.

Japan’s banking policy is also expected to show improvements.
The stronger picture suggests that Prime Minister Shinzo Abe’s economic stimulus programme, so-called Abenomics may finally, be kicking in. This is the strategy expected to fight the countries high balance sheets and deflation concerns.

In the short term we are expecting Japanese Trade Balance figures on Sunday evening. This is expected to show another improvement for Japan, making buying the Yen more expensive as we start the new week.

Call our office on 01494 725 353 for more information on how future data releases could affect your currency requirement.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.