Snapshot: GBP/JPY trades at 213.85 (-0.28, -0.13%), pressured by falling UK gilt yields after yesterday’s softer CPI print. Focus remains on the BoE’s next meeting, where a more dovish tilt is increasingly priced in. Tokyo Core CPI at 08:30 JST could offer a near-term jolt, although BoJ policy expectations are well-anchored.
- Watch 213.33 – a break below would confirm downside momentum.
- Risk: Unexpected hawkish rhetoric from BoJ officials could trigger a sharp Yen squeeze.
Bias into NY: Short GBP/JPY, targeting 213.00, as continued downside pressure on UK yields, influenced by a dovish repricing of the BoE, overshadows any moderate Yen weakness given the stable DXY at 99.13 and flat US yields.