Snapshot: GBP/JPY trades at 214.65, up +0.10% today, driven by the BoJ’s continued slow normalisation bias. Wage data supports further hikes, but Governor Ueda’s patient stance underpins the Yen’s weakness. The DXY is firmer at 99.06.
- Watch for resistance around 215.00, a break above which could trigger further upside given the current momentum.
- Risk of a surprise intervention from the BoJ should Yen weakness accelerate too far, particularly if it tests prior intervention zones.
Bias into NY: Bullish on GBP/JPY, as the BoJ’s measured approach to policy normalisation contrasts with the BoE’s data-dependent caution; a break above 214.88 looks likely. US 10Y yields are modestly lower at 4.452%, offering little resistance to the cross.