Snapshot: GBP/JPY is pushing higher, testing resistance near 192.50, as the Bank of Japan’s latest decision to hold rates steady at 0.50% reinforces the monetary policy divergence with the Bank of England. Ueda’s comments on the willingness to hike further if the outlook tracks projections provided a limited boost to the Yen. All eyes on potential intervention if Yen weakness persists.
- Watch for a break above 192.75 to confirm the bullish trend; a failure to break could signal a short-term pullback.
- Risk of BOJ intervention remains elevated; any headlines hinting at intervention would trigger a sharp reversal.
Bias into NY: Bullish on GBP/JPY while the BoE remains reluctant to cut rates and the BoJ maintains a slow normalisation bias. A sustained break above 192.75 targets 193.50, while lower US yields and a weaker dollar could offer additional support.