GBP/JPY’s Outlook Brightens Amid Stronger BOE Rate-Increase Bets

0314 GMT — GBP/JPY’s outlook brightens amid stronger BOE rate-increase bets, says Fawad Razaqzada, market analyst at City Index and Forex.com, in an email. U.K. inflation data released Wednesday has revived expectations that the BOE will now raise rates even higher and keep them there for longer, Razaqzada says. The data has also led to further yield-spread widening between U.K. and Japanese government bonds, boosting GBP/JPY, Razaqzada says. On technical charts, GBP/JPY has to hold support at 166.85-167.00 on any short-term dips for an eventual climb toward and possibly beyond 170.00, Razaqzada adds. GBP/JPY is down 0.1% at 167.45 after touching 167.98 on Wednesday, the highest intraday level since December 2022, according to FactSet. (ronnie.harui@wsj.com)