GBP/JPY returns above 214.00 with BoE’s decision looming

💡 DMK Insight

The Pound’s rebound against the Yen signals a potential shift in market sentiment. With the pair trading above 214.00, bulls are gaining momentum, eyeing the 16-year high at 215.00. This upward movement could be fueled by ongoing economic concerns in Japan, particularly around the Bank of Japan’s monetary policy, which remains accommodative despite global tightening. Traders should watch for resistance at 215.00; a break above could trigger further buying and possibly lead to a test of higher levels. Conversely, if the Pound fails to maintain its position, a pullback could occur, especially if broader market conditions shift or if UK economic data disappoints. Keep an eye on the daily chart for any signs of exhaustion in this rally, as well as any news from Japan that could impact the Yen. The real story here is how the Pound’s strength could influence related pairs, particularly GBP/USD, which might see increased volatility if this trend continues.