GBPJPY January 2026 fundamental analysisBritish Pound/Japanese YenFX:GBPJPYOneirotradeGBP/JPY Current Level: 210.974 | 1-Month Change: +4.20% | Trend: Strong Uptrend Fundamental Analysis: GBP/JPY has been the strongest performer among major pairs, driven by a powerful combination of GBP strength and JPY weakness. The BoE's rate cuts (to 3.75% and expected further to 3.25%-3.50%) create positive carry trades denominated in sterling, while the BoJ's limited tightening (to 0.75% with real rates remaining deeply negative) fails to provide yen support. The interest rate differential has widened significantly in GBP's favor. Additionally, the UK's disinflation supports continued BoE easing, while Japan's inflation persistence (2.9%) suggests the BoJ's tightening cycle will remain gradual. Risk appetite remains supportive of carry trades in GBP/JPY. Safe-haven demand for the yen is limited in a risk-on environment. The pair has established a clear technical uptrend with strong momentum. Recent Price Action: Strong uptrend with +4.20% monthly gain reflects powerful GBP strength and yen weakness. Momentum is decisively positive with the pair near 211. Verdict: BUY – Exceptional interest rate differential advantage, GBP's carry appeal from soft recent rate cuts, yen structural weakness, and strong technical momentum all support continued GBP/JPY appreciation.