Snapshot: GBP/JPY is consolidating near recent highs after a mixed bag of UK data; the pair remains sensitive to BoJ communication. The BoJ’s Koeda spoke overnight in Fukuoka, but the comments offered little new information. Later today, all eyes will be on BOE Gov Bailey’s speech at 16:00 London for further clues on the MPC’s thinking.
- The 193.50-194.00 zone represents formidable resistance given prior intervention zones and potential MoF discomfort with further Yen weakness.
- Rising US real yields and a firm USD are headwinds for GBP/JPY, but the pair’s sensitivity to Yen-specific drivers outweighs broader USD moves for now.
Bias into NY: Sideways, with a watchful eye on intervention risk; a clear break above 194.00 would open the door to further upside, while a dovish read on Bailey’s remarks could see GBP/JPY retrace towards 192.50.