Japanese Prime Minister Yoshihide Suga declared a state of emergency that will last from Friday, January 8th until February 7th, 2021 in Tokyo and the three neighboring prefectures of Chiba, Saitama and Kanagawa. This latest announcement has weighed down upon the Yen.
With the current measure in place, an already weakened Yen and decelerated economy has propped up currency pairs such as GBPJPY. On Friday, as the lockdown came into effect, the pair broke out from consolidation under the 140.500 level and soared to a high of 141.373.
As the pandemic continues and multiple lockdowns around the globe take effect, the markets have been under pressure. In the case of the Dragon, GBPJPY, a third national lockdown post-Brexit may further weigh upon the Pound, keeping this pair from soaring to higher prices.