Snapshot: GBP/JPY trades near 192.80, unchanged from the overnight session. The BoJ’s cautious stance on further rate hikes, as reflected in the Summary of Opinions, underpins Yen weakness. No top-tier UK or US data scheduled before the NY close.
- Watch 193.00; break would open the door to further gains driven by carry.
- A surprise hawkish shift from Bailey this week could trigger a sharp reversal given crowded Yen shorts.
Bias into NY: Bullish GBP/JPY while the BoJ maintains its measured approach to policy normalisation, targeting 193.50. US real yields softening may provide a tailwind for risk assets and support the cross.