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>>GBP/JPY climbs above key resistance as the yen weakens further ahead of Bailey’s pivotal testimony

GBP/JPY climbs above key resistance as the yen weakens further ahead of Bailey’s pivotal testimony

crypthub

about 16 hours ago

GBP/JPY Breakout

The pound surged 1.8% this week, breaking the two‑week range and topping the 189.30 resistance. The move occurred on above‑average volume, with RSI shifting into bullish territory and the 50‑day moving average now supporting near 188.40. Analysts view these signals as genuine momentum rather than a fleeting spike.

Yen Weakness and Policy Gap

Japan’s ultra‑accommodative stance and a widening interest‑rate gap keep the yen under pressure, while the Bank of England holds rates near 4.25% and the Fed stays high. This divergence fuels carry‑trade flows that borrow low‑yielding yen to buy higher‑yielding pounds. The result is sustained yen depreciation and added support for GBP/JPY.

Bailey’s Testimony Risk

Governor Andrew Bailey’s upcoming Treasury Committee appearance is the key market catalyst. Hawkish remarks on inflation could push the pair toward the 191.00 level, whereas dovish comments may trigger profit‑taking back to the 189.30 support. Traders will watch his guidance closely to gauge the breakout’s durability.