GBP/JPY rebounds from 160.00 as BOJ holds rising commodity prices responsible for weak yen

• GBP/JPY has found a decent buying interest near 160.00 on broader selling in yen.
• BOJ officials have held rising commodities prices responsible for the weakening yen.
• Pound bulls have been underpinned by strong GDP numbers.

The GBP/JPY pair has attracted some significant offers near 159.50 amid a broad-based selling in the Japanese yen after the hangover of the unlimited bond-purchase program by the Bank of Japan (BOJ). The cross is surging sharply and has gained almost 0.7% on Friday from its previous close at the press time.

The hangover of extreme buying of the Japanese Government Bonds (JGBs) to cap the yields at 25 basis points seems over after the conclusion of the four-day bond-buying on Thursday. It looks like the market participants were waiting for the completion of JGBs distribution from market participants to the BOJ and merely a simple pullback after a firmer rally has been capitalized by investors.

The Japan Chief Cabinet Secretary Matsuno believes that as per the BOJ Tankan survey the economy is looking upward but issues from the Covid-19 pandemic persist. Also, the BOJ officials have emphasized rising commodity prices stating that Japanese manufacturers have mainly pointed to the impact of rising raw material prices and parts shortages on current business conditions.

Meanwhile, the pound has been underpinned against the yen on decent performance from UK’s Gross Domestic Product (GDP). The quarterly GDP on Thursday landed at 1.3% higher than the market estimate and prior figure of 1%. While the yearly GDP has been recorded at 6.6% slightly higher than the street consensus and previous print of 6.5%.