Ella 
The GBP/JPY cross gained more than 55 pips intraday but was able to hold above the 185.00 psychological mark during Monday’s European morning.
The yen (JPY) weakened following reports that the Bank of Japan (BoJ) will buy unlimited amounts of government bonds with remaining maturities of five to 10 years at a fixed rate. This in turn helped GBP/JPY crosses attract some bargain hunting on the first day of the new week. Still, concerns over Japanese authorities’ intervention and a generally weaker risk tone limited losses in the safe-haven yen and limited GBP/JPY’s upside, at least for now.
Investors remain concerned about deteriorating economic conditions in China. Also, the People’s Bank of China (PBoC) cut interest rates less than expected, signaling limited policy support for the economy despite concerns about a deepening crisis in China’s property sector, further denting investors’ appetite for riskier assets. Meanwhile, the near-term bias in GBP/JPY crosses appears to be in favor of bulls after the Bank of Japan took a more dovish stance.
In fact, the Bank of Japan is the only central bank in the world to maintain negative interest rates. In contrast, the Bank of England raised its benchmark interest rate for the 14th straight time, reaching a 15-year high of 5.25% in August. In addition, the market also sees a greater chance of a 25 basis point rate hike by the Bank of England at its September meeting. British second-quarter wage growth data hit a record high, adding to market concerns about long-term inflation.
Additionally, an upbeat UK GDP report and slightly higher-than-expected UK CPI data also supported the prospect of further BoE tightening, suggesting that the path of least resistance for GBP/JPY crosses is to the upside.
