Snapshot: GBP/JPY trades near 193.40, pressured by a cautious Bank of England stance despite recent softer inflation prints. The central bank’s reluctance to pivot to rate cuts amid sticky services CPI is weighing on Sterling against the Yen’s slow-normalization bias. Keep an eye on broader risk sentiment as well, with VIX down.
- Watch 193.00; a break below opens the way to 192.50.
- Rising US real yields pose a headwind to risk assets, a GBP/JPY negative.
Bias into NY: Short GBP/JPY. BoE caution relative to BoJ normalization and rising US real yields favour Yen strength. Look for moves toward 193.00.