GBP/JPY: Bullish Trend Holds Strong Amid BoJ Caution, Eyes 200 Mark

The GBP/JPY pared some of its gains after hitting multi-month high. It hit an intraday low  of 197.02 and is currently trading around 197.14.  Intraday trend is bullish as long as support 196  holds.  

On June 17, 2025, the Bank of Japan opted to maintain its policy rate at 0.5%, reflecting a prudent stance in the face of ongoing inflationary pressures. This decision unfolded amid heightened global uncertainty and downward revisions to growth projections, prompting some policymakers to advocate for a temporary pause in rate adjustments. While there is broad agreement on the necessity of eventually raising rates from their historically low levels, the timing remains contingent upon economic data. Most economists anticipate a potential increase to 0.75% later in 2025, provided that wage growth and inflation demonstrate sufficient persistence.

‘The GBP/JPY pair is trading above  34 and 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a bullish trend.  Any violation below 196.75 indicates the intraday trend is weak. A dip to 196/195/194/193.70 is possible.  Immediate resistance is at 198.25 a breach above this level targets of 200/202.

Market Indicators (4- hour)

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy:  buy on dips

 It Is good to buy on dips around 197 with SL around 196  for a TP of 200.