• GBP/JPY kicks off the new week on a positive note and climbs to a one-week high.
• Economic concerns stemming from Mideast tensions continue to weigh on the JPY.
• Delayed BoE rate hike bets cap the GBP and spot prices amid JPY intervention fears.

The GBP/JPY cross attracts some follow-through buyers at the start of a new week and climbs to a one-month peak during the early European session. Spot prices, however, remain below the 215.00 psychological mark. Moreover, the mixed fundamental backdrop warrants some caution before positioning for any further appreciating move.

Data released earlier today showed that Japan's corporate Capital Spending flatlined in the first quarter, falling short of market expectations and marking a sharp deceleration from the 6.5% YoY rise seen in the final quarter of 2025. This comes on top of economic concerns stemming from the Middle East conflict and the continued energy supply disruption through the Strait of Hormuz, which undermines the Japanese Yen (JPY) and acts as a tailwind for the USD/JPY pair.

Meanwhile, traders pushed back expectations for the likely timing of the next interest rate hike by the Bank of England (BoE) to December in reaction to softer UK consumer inflation figures and an unexpected rise in the UK Unemployment Rate. Moreover, BoE governor Andrew Bailey said on Friday that the UK central bank is in no rush to raise interest rates while the outcome of the Iran war remains uncertain and the UK’s growth rate stays weak, which caps the British Pound (GBP).

Furthermore, speculations that Japanese authorities might step in again to prop up the domestic currency hold back the JPY bears from placing aggressive bets and contribute to capping the GBP/JPY cross. Hence, it will be prudent to wait for some follow-through buying beyond the 215.00 mark before positioning for additional gains beyond the 216.00 round figure, towards retesting a multi-year peak, around the 216.70 region, touched late April.