The GBP/JPY trades are weak on board-based Pound weakness. It hit an intraday low of 192 and is currently trading around 192.28. Intraday trend is bearish as long as resistance 195 holds.
Bank of England's Policy Insights
On January 29, 2025, Bank of England Governor Andrew Bailey spoke about future monetary policy and interest rates. He mentioned that the bank plans to cut interest rates, with a reduction expected at the upcoming meeting on February 6, 2025. Bailey highlighted the challenges of global economic issues and how they affect the UK economy. He stressed the importance of maintaining financial stability as monetary policies change. His comments show a commitment to stimulating growth while managing inflation in uncertain times.
Technical Analysis of GBP/JPY
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming an overall bearish trend. Immediate resistance is at 192.85; a breach above this level targets of 193.36/194/195/195.60/196.25/197. Downside support is at 192 with additional levels at 191.39/190/188.70/188.
Market Indicators
CCI (50)- Bearish
Directional movement index - Bearish
It is recommended to sell on rallies around 193 with a stop-loss at 194.10 for a TP of 190.
