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GBP/JPY recovers its daily losses and extends its gains for the third successive day, trading around 194.20 during the European session on Wednesday. However, the GBP/JPY cross faced challenges as the Japanese Yen (JPY) gained ground due to robust Producer Price Index (PPI) data, which suggested the possibility of further policy tightening by the Bank of Japan (BoJ).The GBP/JPY cross may appreciate further, as the JPY struggles to maintain strong bullish momentum amid mixed sentiments surrounding the BoJ’s willingness to proceed with another rate hike in December.While BoJ Governor Kazuo Ueda has suggested that the timing for the next rate hike is drawing closer, supported by robust underlying inflation data, dovish BoJ board member Toyoaki Nakamura has cautioned against raising rates prematurely, further fueling skepticism about the BoJ’s policy trajectory.Moreover, the GBP/JPY cross regains its ground as the Pound Sterling (GBP) receives support from increased market confidence in the Bank of England (BoE) to keep its interest rates unchanged at 4.75% in December’s monetary policy decision.BoE policymakers are anticipated to vote to keep interest rates unchanged, as UK headline inflation has risen again after briefly falling below the bank’s 2% target. The central bank had previously forecasted a rebound in inflation following its temporary alignment with the target range.Traders are likely to focus on the UK’s October monthly Gross Domestic Product (GDP) and Industrial and Manufacturing Production data. Economists anticipate growth in factory output and GDP following declines in September.More By This Author:WTI Continues To Rise Toward $69.00 Due To Improved Demand Outlook In China GBP/USD Maintains Position Around 1.2750 Amid Market Caution As Key Economic Figures Loom Silver Price Forecast: XAG/USD Rises To Near $32.00 Within An Ascending Channel
