GBP/JPY consolidates around 185.50 as the Yen loses steam

• Sterling's rebound from 185.00 is capped at 185.60.
• Dovish BoJ rhetoric hurt the Yen.
• The broader bearish trend remains intact.

The pound has nudged higher against a weaker Japanese Yen, weighed by the dovish comments by the BoJ deputy governor and a moderate uptick on US Treasury yields.

BoJ dep gov Himino cooled hopes of momentary policy normalisation in the next months, suggesting that interest rates will remain negative until sustained stable 2% inflation is achieved.

Beyond that, the moderate pick up on US Treasury yields has added pressure on the Yen, which is the most sensitive currency to yield differentials with US bonds.

The hourly chart shows hesitation above 185.00, resulting in a falling triangle pattern. This figure has a bearish bias with next support levels below 185.00, at 18470 and 182.73. Resistances are 185.80 and 186.15. 
 

Technical levels to watch