GBPJPY BULLISH OR BEARISH DETAILED ANALYSISGBPJPY is currently trading near 192.100 and has successfully broken out of a falling wedge pattern on the 12-hour chart. This classic bullish reversal structure indicates that buyers have regained control, with momentum building for a potential move toward the 197.400 target area. The breakout candle is strong and well-formed, confirming upside interest after a period of consolidation and price compression.
Fundamentally, the Japanese yen remains under pressure due to the Bank of Japan’s continued ultra-loose monetary policy, while the pound is gaining support ahead of this week's Bank of England rate decision. Traders are pricing in cautious optimism from the BOE as inflation persists, which adds strength to GBP. The divergence in policy stance between the BOE and BOJ creates a favorable environment for GBPJPY bulls.
Technically, the falling wedge breakout is happening in line with higher lows and sustained buying volume. The 190.000 region served as a strong support base, and the breakout above wedge resistance around 191.800 now turns that area into support. The next key resistance sits at 195.000, with potential extension toward the psychological zone of 197.400.
This setup aligns with a trend continuation following the recent impulsive wave, and the risk-reward profile remains attractive for swing buyers. As long as GBPJPY holds above 190.800, the upside thesis remains valid. Keep an eye on UK rate sentiment and BOJ updates to support this technical play.
