FxWirePro- GBPJPY Trade Idea

The GBP/JPY  gained sharply as BOJ kept its rates steady at 0.50%.  It hit an intraday high of 194.90  and is currently trading around 194.51. Intraday trend is bullish as long as support 191.80 holds.

On 19th March 2025, the Bank of Japan (BoJ) unanimously decided to maintain its key policy interest rate at 0.50%, consistent with market forecasts because of economic uncertainties, precisely those relating to U.S. trade policies by President Trump. Although noting anemic recovery in the economy and inflation at, or a bit more than, 2% due to elevated wage growth, the BoJ is cautious about premature policy tightening, which could slow economic growth. Governor Ueda indicated that the bank will watch carefully before taking additional monetary policy measures, with potential gradual interest rate hikes depending on additional economic progress and in keeping with inflation developments. Following the announcement, the yen stabilized and the Nikkei 225 index went up by 0.69%, which signifies positive investors on forthcoming money policy action

Technical Analysis Points to Further Downside 

The GBP/JPY pair is trading above  34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bullish trend. Immediate resistance is at 194.90, a breach above this level targets 196/196.80/198. Downside support is at 193.69 with additional levels at 192.79/192.30/191.70/191/189.80/188.75/188/187.25/186/185.

Market Indicators

CCI (50)- Bullish

Directional movement index - Bullish

 It is recommended to buy on dips around 193.50 with a stop-loss at 192.70 for a TP of 196.