GBP/JPY Hinges on Bank of Japan Press Conference and ¥206 Support Level

The GBP/JPY currency pair is being closely watched by traders as they await the Bank of Japan's press conference on Friday morning. The British pound has fallen against most currencies after the Bank of England's decision not to raise interest rates, despite sounding hawkish.

Christopher Lewis, a technical analyst at DailyForex, notes that the ¥206 level is crucial for the bullish outlook. This area has been supported multiple times and will be closely watched following recent intervention in the Japanese yen.

If the GBP/JPY pair stays above ¥206, it could be a good sign. Lewis also emphasizes the importance of interest rate differentials driving the pair higher eventually.