Snapshot: GBP/JPY is steady around 194.20, building on yesterday’s gains. The BoE’s cautious stance, highlighted by the 8-1 vote to hold rates steady, continues to contrast with the BoJ’s slow normalisation bias, keeping upward pressure on the pair. This morning’s UK earnings data and claimant count will be key in shaping expectations for the next BoE meeting.
- Watch 194.50; a sustained break could open the way to 195.00.
- A significant downside surprise in UK earnings data at 07:00 London could quickly reverse recent gains.
Bias into NY: Bullish. The widening policy divergence between the BoE and BoJ continues to favour further upside in GBP/JPY; a test of 194.50 looks likely, with the potential to extend gains towards 195.00 if risk appetite remains stable. Higher US Treasury yields lend only marginal support.