GBPJPY Chart Technical Outlook set to bounce toward 183.79 on BoE, and as markets stabilize
Over 100 pips down, GBP/JPY has room to correct to the upside. The Bank of England is set to leave rates unchanged but may insist the door is open to more hikes as inflation is slowly falling. A small, but vocal minority of officials will likely vote for a hike, contrary to consensus and dissenting from the mainstream.
That should give the Pound an edge against the Yen, which is strengthening due to a perceived dovish stance from the Fed. The drop in US yields sent US yields down, dragging USD/JPY and also GBP/JPY down along it.
GBP/JPY faces resistance at 183.79, followed by the recent peak of 184.30. Support is at 182.92, followed by 181.89 and 181.10.