GBP/JPY Surges: Bullish Momentum Continues Amid BOJ's Hawkish Stance

The GBP/JPY surged strongly as yen gained momentum. It hits an high of 194.59 at the time of writing and is currently trading around 194.578.  Intraday trend is bullish as long as support 193 holds.  

The BOJ is prepared to raise interest rates even further if economic data supports it, as an effort to sustainably achieve a 2% inflation target, according to Governor Kazuo Ueda, who noted that the target has not been fully achieved. But the BOJ said it expects these shocks will be short-lived and that food prices, especially rice, are 'highly concerned'. In light of worldwide trade tensions, the BOJ lowered its economic and inflation forecast for 2025 and 2026, while maintaining that fundamental inflation will approach 2% over the medium term; currency strengthened against Ueda's warning as another rate hike this year was expected in markets.

The GBP/JPY pair is trading above  55 and  200 EMA (Short-term) and  365 EMA (long term on the 4- hour chart, confirms a bullish trend.  Any violation below 194 indicates intraday trend is weak. A dip to 193.30/192.85/192/191.70/191 /190 is possible.  Immediate resistance is at 195,a breach above this level targets of 196.50/198.

Market Indicators (4- hour)

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy: Sell on rallies

 It Is good to buy on dips around 194 with SL around 193 for a TP of 196.48.