Ella 
GBP/JPY holds on to modest intraday gains near multi-week top hit earlier on Thursday
Dovish Bank of Japan stance, positive risk tone continue to weaken JPY and support the pair
Traders are now eyeing UK macro data to bet on further gains
GBP/JPY currently appears to be entering a bullish consolidation phase, trading in a range near the four-week high hit in Asia on Thursday. Spot prices are currently trading around the 183.70 area, flat on the day, as traders wait and see ahead of UK data.
On Thursday, the UK will release monthly GDP and August manufacturing and industrial production data. The Bank of England unexpectedly paused raising interest rates in September and has given few hints of plans to raise interest rates. Therefore, if UK macro data disappoints, it may revive recession fears and increase market bets that the Bank of England will remain on hold in November. This would weigh on GBP and fail to help GBP/JPY capitalize on the recent rally from 178.00, or the more than one-month low hit in early October.
At the same time, its downside is more likely to be limited as the Bank of Japan adopts a more dovish stance. Indeed, the Bank of Japan reiterated its view that inflation is temporary and has no plans to phase out its massive monetary stimulus. This, coupled with broad equity gains, could continue to weaken the safe-haven Japanese yen and act as a GBP/JPY tailwind. There is still minimal resistance to the upside in spot prices and any intraday corrective decline may be viewed as an opportunity by bullish traders.
