Snapshot: GBP/JPY is currently bid around 194.20, building on earlier gains after UK CPI data surprised to the downside. Easing inflationary pressures reduce the urgency for further BoE tightening, although the MPC remains data-dependent.
- Watch 194.50, a break of which could trigger further upside.
- The 14:15 London Monetary Policy Report Hearings presents headline risk.
Bias into NY: We favour further upside in GBP/JPY while UK data supports a more dovish BoE path, targeting 194.75. A firmer dollar tone should not derail the overall bullish sentiment in the pair.