GBP/JPY Price Analysis: Bulls march towards fresh cycle highs above 186.00

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• GBP/JPY rose to a daily high near 186.20, displaying nearly 0.70% gains.
• GBP traded strongly against most of its rivals following hot inflation figures from the UK in July.
• The extreme dovish position of the BoJ leaves the JPY vulnerable.

In Wednesday’s session, the GBP/JPY advanced to new cycle highs, near 186.20, mainly driven by the GBP’s strengths. The UK revealed higher-than-expected Consumer Price Index figures from July, which boosted hawkish bets on the Bank of England (BoE) and British yields, making the Pound gain interest. On the other hand, the Bank of Japan (BoJ) diverges against its peers, making the JPY weaker.