The GBP/JPY gained more than 80 pips from yesterday’s low on weak yen. It hit an intraday high of 198.93 and is currently trading around 198.87. Intraday trend is bullish as long as support 198 holds.
The Bank of England is signaling imminent interest rate cuts, with the next decision set for August 7, 2025, and Governor Andrew Bailey indicating a "downward" trajectory, especially if economic and job market weakness persists; economists largely expect a 25-basis-point reduction to 4.00% in August, with potential for another cut by year-end to around 3.75%, though the BoE remains data-dependent to balance economic support with inflation control.
The GBP/JPY pair is trading above 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a bullish trend. Any violation below 198 indicates the intraday trend is weak. A dip to 197.70/196.70/196.25/195.25/194/193.70 is possible. Immediate resistance is at 199.25, a breach above this level targets 199.60/200/202/204.
Market Indicators (4-hour chart)
CCI (50)- Bullish
Directional movement index - neutral
Trading Strategy: Buy
It is good to buy on dips around 198.70-75 with SL around 198 for a TP of 202.
