GBP/JPY Soars After BoE Holds Rates: Bullish Trend Confirmed

The GBP/JPY gained sharply after the BOE's monetary policy. It hit an intraday low of 194.02 and is currently trading around 195.764.  Intraday trend is bullish as long as support 193.70  holds.  

The Bank of England opted to maintain its policy rate at 4.25% in June 2025, reflecting a measured approach in light of ongoing inflationary pressures—CPI stood at 3.4% in May—and continued global uncertainty, including elevated oil prices due to tensions in the Middle East. The Monetary Policy Committee’s 6-3 vote to hold rates highlights an emphasis on gathering more definitive evidence of sustained disinflation, particularly regarding services, wage growth, and energy costs. As a result, the prospect of further monetary easing will depend on forthcoming economic data, with attention now turning to August as the possible window for the next rate adjustment, contingent upon inflation trends and broader economic developments.

The GBP/JPY pair is trading above  34 and 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 1-hour chart, confirming a bullish trend.  Any violation below 194.50 indicates the intraday trend is weak. A dip to 194.30/193.70 is possible.  Immediate resistance is at 196, a breach above this level targets 196.85/198/200. Any major uptrend is possible only above 196.85.

Market Indicators (1-hour)

CCI (50)- Bullish

Directional movement index - Bullish

Trading Strategy:  buy on dips

 It is good to buy on dips around 195.50 with SL around 194.70  for a TP of 198/200.