GBP/JPY Surges Post-BOE: Bullish Momentum Builds

GBP/JPY jumped sharply after the BOE rate cut. It hits an intraday high of 193.10  and is currently trading around 192.81.  Intraday trend is bullish as long as support 190 holds.

The Bank of England's Monetary Policy Committee has maintained the Bank Rate at 5.25% since January 2024 to meet its 2% inflation target, as well as to stimulate economic growth and employment, though members disagree about tightening or easing. Headline CPI inflation, while falling, is predicted to increase to 3.7% in Q3 2025 before easing, remaining at least above target until Q4 2027, with risks now viewed as more balanced even after wage growth and high services price inflation. The MPC is rolling back its QE asset holdings from £895bn to £623bn by March 2025 via asset sales and maturity, and this speaks to gradual policy tightening while holding to a restrictive policy stance as long as is required to lock in sustainable inflation. The MPC continues to abide by its flexible inflation-targeting regime, operating independence, and openness, and being prepared to move on changing economic information.

The GBP/JPY pair is trading above  34 and above 55 EMA (Short-term) and 200 EMA (long term on the 4-hour chart, confirms a bullish trend.  Immediate resistance is at 193.20,a breach above this level targets of 194/195. Downside support is at 192.40 191.70/190.95/190.40/190/189.30/188.

Market Indicators

CCI (50)- Bullish

Directional movement index - Bullish

Trading Strategy: Buy on dips

 It Is good to buy on dips around 192.60 with SL around 191.70 for a TP of 195.