Snapshot: GBP/JPY trades at 215.70, up 0.05% after the BOJ held steady at <0.75% and offered no surprises in its outlook report. The slight risk-on tone in Asia, with the Nikkei +1.18%, is providing a mild tailwind, but the 10Y US yield at 4.323% is the key driver.
- Watch 216.00 resistance; a break higher would confirm bullish momentum.
- Risk: DXY weakness reversing unexpectedly, negating current GBP strength.
Bias into NY: Mildly bullish, targeting a push towards 216.50 if US yields continue to hold or grind higher. Sterling strength is predicated on a hawkish repricing, and that requires relative yield support.