GBPJPY Plunges 200+ Pips, Then Reverses — Bulls Eye 216 on Dip Buys

GBPJPY lost more than 200 pips after BOJ's monetary policy. The intraday trend is bullish as long as support 212 holds. As of publishing, it is trading around 213.958; its intraday high is 214.85.

Supported by a mild worldwide recovery and developing home wage-price dynamic, the Bank of Japan maintained its policy rate steady at 0.75% in an 8-1 vote on January 23, 2026, taking a cautious approach despite updating GDP growth projections to 0.9% for FY2025 and 1% for FY2026. At 2.1% in December, inflation remained over the 2% objective; the BOJ anticipated a temporary drop below the goal early in 2026 before stabilization; core CPI is projected at 2.7% in FY2026 before easing toward 1.9–2%. Though one dissenting board member pressed for an immediate increase to 1% given ongoing upside inflation concerns, Governor Ueda highlighted a data-dependent strategy and kept optionality for future rate increases. Political instability brought on by an upcoming February 8 snap election and a large fiscal stimulus program, together with erratic JGB yields, a depreciating yen, and negative real interest rates, is probably stalling normalization. Markets are pricing in just minor tightening (about 20 basis points) by June 2026 and are closely observing Ueda's post-meeting signals for USD/JPY movement.

Oscillators and moving averages to forecast the trend of GBPJPY

CMP- 213.93

EMA ( 1-hour chart)

55-EMA- 213.25

200-EMA- 212.60

365-EMA- 212.08. The pair trades above the short (55- EMA) and long-term moving average (200 and 365 EMA).

Major Support- 213.45. Any breach below will drag the pair down to 213/212.50/211.85/211/210.70/210..

Major resistance - 215.  Any break above 215 confirms minor bullishness; a jump to 216/217 is possible.

Indicator (1-hour chart)

 CCI (50)-  Bullish

Average directional movement Index-  Bearish. All indicators confirm a mixed trend.

It is good to buy on dips around 213.48-50 with SL around 212.50 for a TP of 216.