Last week, GBP/JPY reached a nearly three-month high of 199.80 after Chancellor Reeves announced a £40 billion tax increase, higher insurance premiums, and an upward adjustment to the inflation target. However, due to the Bank of Japan’s hawkish stance, the pair was pushed back down to 195.38 before rebounding to the 198 range, without touching the upper limit of the triangle pattern at 195.
This week, the Bank of England (BOE) policy meeting will be held. Before the budget announcement, the market had anticipated additional rate cuts in November and December. For this meeting, a 0.25% rate cut is expected. However, the BOE is likely to adopt a more cautious approach to further rate cuts, which could lead GBP/JPY to break last week’s high.
GBP/JPY Forecast Range: 201.40 to 194.00
Please note that the information above does not guarantee profits, so make your own decisions when trading.