Snapshot: GBP/JPY trades at 214.72, up 0.13% on the day. A pullback in UK CPI figures released in April has slightly reduced pressure on the BoE to cut, while the Bank of Japan’s steady hand provides a foundation for Guppy strength as the market looks towards further BoJ policy decisions.
- Watch for rallies toward 215.00.
- A sharp risk-off move in US equities could trigger Yen buying and unwind some GBP/JPY gains.
Bias into NY: We favour further upside in GBP/JPY, contingent on risk sentiment remaining constructive. The setup favours a test of intraday highs near 214.88 and potentially a push towards 215.00, bolstered by the BoJ’s current policy stance.