The GBP/JPY currency pair is going up now that it has found support at 165.00. As the effects of Japan’s good GDP numbers wears off, the asset hopes to return to 166.00. Investors will also pay attention to the UK’s job market data next week.

On Thursday, the GDP numbers for Japan went from 2.9% and 2.2% to 3.5%. The quarterly data came in at 0.9%, higher than the 0.7% expected and the 0.5% seen before. Officials in Japan are also worried about the yen’s value going down.

Reuters said that Kanda, Japan’s top currency diplomat, noted that recent drops in the yen couldn’t be explained by how the economy works. He also said that the BOJ would help the bulls of the yen. Tokyo is talking to other countries about their recent currency moves.

The new Prime Minister of the UK has helped the pound bulls. Liz Truss’s efforts to lower energy prices and create more jobs are making people feel better about the future. The new cabinet capped a typical household’s energy bills at £2,500 a year. It cuts down on headwinds in the home. It will keep them from using a lot of energy in the winter.

Conclusion

Investors will watch the UK’s job market data next week. Since the pound zone hasn’t raised household wages, the focus will be on the labour cost index.