Forex traders are eagerly awaiting UK employment data, where average weekly earnings are predicted to keep inflationary pressures elevated and the Bank of England sidelined. A solid headline growth figure of 110K is expected. Volatility in the British Pound increased together with selling pressure following commentary regarding the trading relationship between the EU and the UK following the transition period. How will today’s economic data impact price action in the GBPJPY? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Bank of Japan decided to keep its key interest rate unchanged together with the 10-Year Yield Target, as expected by markets. The central bank noted that inflationary pressures are easing, and left the door open for future interest rate cuts deeper into negative territory. Risk-verse investors keep demand for the Japanese Yen healthy, especially after yesterday’s dim global economic outlook by the IMF. Where is the GBPJPY headed to next? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.