GBP/JPY Hits Yearly High on BoJ's Decision and Bullish Sentiment

During early Friday trading, the GBP/JPY currency pair rallied to a fresh yearly high of 168.15 as market bulls celebrated the Bank of Japan's (BoJ) decision to maintain the status quo. The technical breakout and strong UK sentiment data also contributed to the pair's upward momentum.

As widely anticipated, the BoJ retained its benchmark interest rates at -0.10% and defended the current 0.50% band of the Yield Curve Control (YCC) policy. However, the central bank also emphasized its commitment to take additional easing measures as needed and maintain market stability. This reassuring message calmed market concerns about any potential changes under the new governorship.

Despite the GBP/JPY's impressive growth, traders should closely monitor the next resistance area between 170.000 and 171.500, where the price may experience a retracement or reversal.