• GBP/JPY rallies over 400 pips intraday after BoJ Deputy Governor Uchida’s remarks.
• A positive risk tone further undermines the safe-haven JPY and remains supportive.
• The lack of follow-through buying warrants caution before placing fresh bullish bets. 

The GBP/JPY cross catches aggressive bids during the Asian session on Wednesday and touches an intraday high, around the 187.25 region in reaction to dovish remarks from the Bank of Japan (BoJ) official. Spot prices, however, trim a part of strong intraday gains and currently trade around mid-186.00s, still up 1.80% for the day. 

The Japanese Yen (JPY) weakens across the board after BoJ Deputy Governor Shinichi Uchida said that the central bank won't hike rates when markets are unstable, pushing the GBP/JPY cross higher. Uchida added that the interest rate path will obviously change if, as a result of market volatility, economic forecasts, views on risks and likelihood of achieving projections change. 

Apart from this, a generally positive tone around the equity markets dents the JPY's relative safe-haven status against its British counterpart and offers support to the GBP/JPY cross. Investors, however, seem convinced that the BoJ will tighten monetary policy again. The bets were reaffirmed by data on Monday, which showed a rise in Japan's real wages in June for the first time in more than two years.