GBP/JPY jumps to levels near 184.00 as a dovish BoJ hammers the Yen
- The Pound rallies with the Yen weighed by a dovish BoJ.
- The BoJ flags more easing and crushes hopes of a hawkish pivot in the near term.
- GBP/JPY shrugs off previous weakness and approaches the 184.35 resistance area.
The Pound Sterling is rallying against an ailing Yen following a dovish monetary policy statement by the Bank of Japan. The pair has pared last week's losses in a nearly 2% daily rally and is getting closer to the 184.35 resistance area.
The BoJ opens the doors to further easing
The BoJ kept its ultra-loose monetary policy unchanged, as expected, but Governor Ueda´s pledge to additional easing if necessary disappointed investors who were looking for hints of a hawkish pivot in early 2024.
The Pound bounced up strongly from the 180.00 area on the back of Ueda´s comments to reach 184.00 at the moment of writing, with Monday´s high, at 184.35 at a short distance.
The strong bullish reaction from the mentioned 180.00 has eased the immediate bearish pressure and a break above 184.35 would increase bulls´ confidence to extend gains towards 186.25 and 187.50.
On the downside, support levels are at 183.20 and 181.65 previous highs.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
