The United Kingdom is facing a number of headwinds at the moment: rising energy prices, a shortage of migrant workers, and general supply chain issues due to COVID. However, the Bank of England is on a steeper rate path than the Bank of Japan and this should keep the GBP supported medium term against the JPY. Furthermore, the Bank of England is facing increasing inflationary pressures from rising price pressures in the UK. This means that the Bank of England may increase interest rates more quickly than anticipated if inflationary pressures keep building. This could support the GBP against the JPY over this month. (full story)