GBP/JPY Price Forecast: Steadies near 201.00, as traders await BoJ's meeting

• Pound capped by Bailey's dovish remarks after BoE keeps Bank Rate at 4% amid inflation concerns.
• BoJ expected to hold rates steady after data showed slower growth, though GDP figures confirm ongoing expansion.
• Technicals point to consolidation, with key resistance at 201.50 and support seen around 199.50-198.90 levels.

The GBP/JPY prints back-to-back bullish candles, posting solid gains of 0.11% on Thursday, though it remains shy of re-testing the current year-to-date (YTD) high of 201.72.

Traders digested the Bank of England's decision to hold rates, though a dovish tilt by the BoE's Governor Andrew Bailey, capped the British Pound advance.

Conversely, the Bank of Japan is expected to hold rates on today's meeting, as the bank's paused its hiking cycle as data revealed that growth slowed. Nonetheless, recent GDP figures showed that the economy continues to grow.

GBP/JPY Price Forecast: To consolidate, within a 130-pip range

From a technical perspective, the GBP/JPY remains poised to extend its gains, but in the short term it could consolidate within the 200.04-201.30 range. The Relative Strength Index (RSI) is bullish, but it has turned flattish. This indicates that neither buyers nor sellers have the upper hand.

If GBP/JPY climbs above 201.00, the next resistance would be 201.50 before challenging the yearly high at 201.72. On further strength, the next area of interest would be 204.23, July 24, 2024, peak.

Conversely if the cross-pair slumps below 200.00, the first support would be the 20-day SMA at 199.49, before testing the 50-day SMA at 198.91. A breach of the latter will expose the August 29 low of 197.94.

GBP/JPY Price Chart - Daily