Pound Powers Up Against Yen: 198 Holds, 200 in Sight?

The GBP/JPY  holds above 198 level on board-based Pound buying. It hit an intraday high  of 198.59 and is currently trading around 198.32.  Intraday trend is bullish as long as support 196.90  holds.  

In June 2025, Bank of Japan (BoJ) policy board member Naoki Tamura signaled a notably more hawkish approach, suggesting that the central bank stands ready to implement “decisive” interest rate increases should inflationary pressures intensify. Tamura’s remarks highlighted the significance of rising wages and persistent services inflation, alongside mounting concerns over escalating food prices. Although the BoJ maintained its policy rate at 0.5% during this period, Tamura emphasized the importance of ongoing bond tapering and indicated that the central bank ought to adjust its monetary stance without delay as economic conditions improve. This assertive perspective, which comes despite internal disagreements and persistent global economic uncertainties, marks a significant departure from Japan’s historically accommodative monetary policy. Consequently, market participants increasingly anticipate further rate hikes in 2025.

‘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 196.90 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 - Bullish

Trading Strategy:  buy on dips

 It Is good to buy on dips around 197.50 with SL around 196.75  for a TP of 200.