News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Narrowing Policy Divergence Signals BOJ Hike, Yen Weakens, Sterling Gains
Forex
Summary:
A Bank of Japan(BoJ) briefing reveals the board's divisions are narrowing as members debate a near-term rate increase. An economic adviser to the prime minister cautions the BoJ against tightening in December.
Buy
TradingGBPJPY
EXP
203.159
Entry Price
207.000
TP
199.000
SL
202.664 +0.940 +0.47%
0
Point
Flat
199.000
SL
CLOSING
203.159
Entry Price
207.000
TP
Fundamentals
GBPJPY is holding around the midpoint of its recent range, underpinned by a softer yen as the BoJ's policy outlook turns murkier.
The Summary of Opinions from the 29–30 October meeting shows policymakers converging on the view that conditions for a rate hike are largely in place. Eight of the entries either urge an early move or spell out the prerequisites for higher borrowing costs in the near term—the clearest signal to date that the BoJ is laying the groundwork for its next step.
Several members cautioned that while immediate action may not be necessary, the Bank "must not miss the opportunity to raise the policy rate." Others noted that if global headwinds remain contained and wage-driven inflation momentum persists, a hike would likely follow. One opinion judged that "conditions for further normalizing the policy rate are almost satisfied," stressing the need to confirm that underlying inflation is firmly anchored.
Despite the shift, several members urged caution. One participant argued that the BoJ should "take more time" to gauge the impact of U.S. tariffs and the forthcoming fiscal package before tightening further. The minutes reinforce market expectations that the Bank is inclined to lift the policy rate in December or early 2026, contingent on spring wage data and external stability.
Takuji Aida—an economist tapped for the cabinet's key advisory panel—said in an interview released Monday that Tokyo should cushion the cost-of-living shock through sizable outlays until real household income turns positive. "A December hike would be high-risk," Aida warned, noting that the economy likely contracted in Q3. He added that raising rates next month would also run counter to the government's stimulus efforts. If the BoJ can foresee solid growth in FY2026, January would be the more viable lift-off point.
Technical Analysis
GBPJPY extended its rebound from 199.04 on Monday but remains within the near-term descending channel and below resistance at 204.22. During the day, the bias stays neutral.
On the upside, a break above 204.22 would signal completion of the decline from 205.30 and open the way for the larger up-move from 184.53 to resume toward 205.30.
On the downside, a breach of the immediate support at 200.63 would expose the 199.04–197.47 retracement zone.
Trading Recommendations
Trading Direction: Buy
Entry Price: 202.57
Target Price: 207.00
Stop Loss: 199.00
Valid Until: November 25, 2025, 23:55:00
Support: 202.49/201.38/200.36
Resistance: 203.29/204.22/205.33
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.