GBP/JPY fluctuates between moderate gains and small losses, as speculation that the Bank of Japan will intervene in the currency market, together with ongoing concerns about China, support the rise of yen.

In fact, Japan's Finance Minister Shunichi Suzuki said last week that the government would not

rule out any options to address excessive volatility in the currency markets. Pound also continues to show relatively low dynamics after the Bank of England unexpectedly paused its rate hike cycle last Thursday.

However, the Bank of Japan's softer stance limits any significant decline in the pair. It is also clear that the Japanese central bank will not make any changes to its policy in the near future, as BOJ Governor Kazuo Ueda said inflation must reach the 2% target first and become stable around this level.

All this keeps traders from aggressive bets, leading to a restrained price range of GBP/JPY.