The pound might remain relatively sensitive to Brexit-related news. Andrew Bailey, Governor of the Bank of England (BoE), will speak on Wednesday, and a hawkish message might push the GBP/JPY pair beyond 166.00, according to ING researchers.

The Northern Ireland protocol’s unilateral removal from the House from the UK government yesterday. There is no doubt ample evidence that the pound is essentially pricing in this scenario, and markets continue to focus mostly on other causes of the UK’s economic weakness and the assumption that Brexit will not have a significant impact on the BoE’s policymaking process shortly.

The main event of the week will be Governor Andrew Bailey’s speech in Sintra tomorrow. A generally hawkish stance might help the pound stabilize further, potentially pushing GBP/JPY higher.

The upcoming gross domestic product (GDP) report could further strengthen the British pound versus the Japanese yen because analysts anticipate that it will remain unchanged at 0.8 percent in the first quarter compared to the previous quarter.

The GDP index from the National Statistics calculates the overall worth of all goods and services produced in the UK. The UK’s GDP serves as a general gauge of economic activity. A rising trend is typically good for the GBP, while a descending trend is bad (or bearish).

Conclusion

Given the pair’s general price activity over the last several days, buying the GBP/JPY pair at current levels could be a good option for the short to medium trading.