GBPJPY set for breakout

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GBPJPY is currently trading in a sideways pattern within an ascending channel. The support zone around 197.900 has been respected multiple times, while price repeatedly fails to break above the 199.800 resistance – signaling that built-up pressure may soon erupt.

Recent data shows that UK inflation remains high, and the Bank of England may maintain its hawkish stance, supporting the GBP. Meanwhile, global risk-off sentiment continues to weaken the JPY.

If price breaks through the current resistance, it would confirm the continuation of the uptrend, with a target toward the upper boundary of the red channel. However, if rejection persists, buying from support remains a valid strategy.

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