Sterling's rally against the Japanese Yen is being tipped to move higher over coming hours according to fresh technical analysis, but expect markets to stay weary of GBP/JPY ahead of the crunch UK election and a key December 15 U.S. tariff decision.
Read more: Pound-Yen Tipped to go Higher Near-Term, but Two Major Risks to this Exchange Rate are Fast...
The Yen bested all but its Swiss rival Tuesday amid fresh tensions between the U.S. and China as well as a turn higher in Japanese government bond yields, although analysts have said there could still be more upside to come.
Read more: Yen Shines amid Renewed Trade Tensions and Higher Japanese Yields but is Tipped to Go Further
A strong start to the week for the Pound-to-Yen exchange rate is being tipped to lead to further gains in the short-term, according to new technical analysis.
Read more: Pound-Yen Week Ahead Forecast: Technicals Suggest Further Gains
Foreign exchange strategists at Citibank - the world's largest dealer of foreign exchange - are forecasting a stronger Yen over the coming months.
Read more: Citi see Stronger Japanese Yen against the U.S. Dollar Going Forward, but Weakness against the Pound
The Pound was trounced by the safe-haven Yen on Friday, with Sterling ceding to the Japanese unit the most ground of all majors, but the looming election and souring risk appetite could see it sell-off even further next week.
Read more: Sterling Trounced by Japanese Yen but Week Ahead Could Bring More Losses