The GBP/JPY Spot tells traders how many Japanese yen they can receive for each pound sterling they hand over.
It is a key currency pair, as the yen and the pound are the third and fourth most-traded monies in the world behind the US dollar and euro.
The value of sterling is heavily dependent on official reports relating to the economy, inflation, gross domestic product and trade balance, although certain commodities such as oil and coal will also have a significant impact on its price as a result of the nation's manufacturing industry.
In terms of recent events, some key moments that affected the GBP/JPY Spot price were the earthquake and tsunami in Japan, the announcement of austerity cuts in the UK and the introduction of a quantitative easing package by the Bank of England in 2009.
Both the yen and the pound are considered to be 'major' monies and they are among the most commonly used reserve currencies, so investors will buy them if they seek a relative safe haven for their capital.
Japanese economic performance plays a vital role in the value of the yen, while it too is affected by changes to commodities such as coal and oil.
As a result, fluctuations in the value of such items are likely to affect both currencies and not have such a major impact on the GBP/JPY Spot.