The FOMC meeting had a hawkish tone, leading to a broad rise in the dollar. At the same time, New York stock prices dropped sharply, causing risk-averse yen buying. As a result, GBP/JPY fell from the mid-195 yen range to just below 194 yen, showing a heavy upward resistance.
Today, both the Bank of Japan (BOJ) and Bank of England (BOE) are holding policy meetings, and GBP/JPY is expected to show volatile movements. The BOJ is expected to leave rates unchanged at today’s meeting but will likely maintain its stance on future rate hikes.
Meanwhile, the BOE is also expected to keep its policy rate unchanged. However, recent UK unemployment and core CPI data came in lower than expected. If the BOE signals a more active approach to future rate cuts, GBP/JPY is likely to see further declines.
GBP/JPY Forecast Range: 195.00–193.00 yen
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