The GBP/JPY declined slightly after hitting multi-week top at 195.01. It hits an intraday low of 194.32 and is currently trading around 194.59. Intraday trend is bullish as long as support 193 holds.
On March 25, 2025, the Bank of Japan (BOJ) released the minutes from its January 23-24 meeting, revealing that policymakers had raised the short-term interest rate to 0.5% in response to inflation concerns. The members were confident that rising wages would maintain inflation near the 2% target, though some noted the risk of prices exceeding this target due to yen depreciation. The board discussed the potential for further rate hikes if underlying inflation trends materialize, with one member suggesting a rise to around 1% by the second half of fiscal year 2025. Policymakers also highlighted risks such as global economic uncertainty and yen depreciation
Technical Analysis Points to Further Upside
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 195, a breach above this level targets 196/196.80/198. Downside support is at 194.30 with additional levels at 193.45/193//192.45/191.70/191/189.80/188.75/188/187.25/186/185.
Market Indicators
CCI (50)- Bullish
Directional movement index - Neutral
It is recommended to buy on dips around 194 with a stop-loss at 193 for a TP of 196/197.
