GBP/JPY retreats to 212.60 area as Takaichi’s win boosts the Yen
The post GBP/JPY retreats to 212.60 area as Takaichi’s win boosts the Yen appeared on BitcoinEthereumNews.com.
The Pound retraces previous gains as a landslide victory by Japan’s Prime Minister Sanae Takaichi onSunday’s elections has sent the Yen rallying against its main peers on Monday. The GBP/JPY has given away nearly 200 pips from session highs at 214.41 to 212.61 at the time of writing. Prime Minister Takaichi has drawn support from her growing popularity to secure the Liberal Democratic Party’s largest win in its history. The LDP obtained 316 of the Lower House’s 465 seats on Sunday’s election, a result that paves the path to extend Takaichi’s tax cuts and economic stimulus policies. The prospects of a strong government have soothed the market, which has reacted by scaling down Yen short positions. The Yen, however, has a bumpy road to a sustained recovery, as Takaichi’s policies will sooner or later face the reality of the country’s fiscal strains. Yen intervention looming Japan’s top currency diplomat Atsushi Mimura has provided further support to the Yen, warning that the government is watching currency movements with ”a high sense of urgency”, meaning that Tokyo authorities are ready to intervene at any moment. In the UK, in the absence of key data releases, a new government crisis is weighing on the Pound. The Downing Street Chief of Staff, Morgan McSweeney, has resigned, taking responsibility for advising Prime Minister Keir Starmer in the appointment of Jeffrey Epstein-linked Peter Mandelson as US ambassador. The scandal has undermined an already damaged credibility of the Labour Cabinet, which will not be restored with McSweeney’s departure. A criminal investigation into alleged leaks of government information by Mandelson might add pressure on Starmer, increasing political uncertainty, which would have a negative impact on the Pound. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by…
Filed under: News - @ February 9, 2026 9:28 am