GBP/JPY back in an uptrend

GBPJPY has resumed its broader upward path following a two-week consolidation period, climbing to a more than 18-year high of 216.47 on Thursday.

With the BoJ providing limited clarity on the timing of its next rate hike, and the BoE expected to keep rates unchanged today but deliver two increases by the end of the year, bullish sentiment has favored the pound.

February’s peak around 215 acted as support earlier in the week, allowing the pair to move above its weekly resistance near 216. If the 217.80–218.00 zone breaks as well, the rally could initially meet the 220 psychological mark before potentially accelerating toward the upper boundary of the year-long bullish channel, seen around 222.65.

That said, it remains uncertain whether the pair has enough momentum for such a strong push higher, as both the RSI and stochastic indicators are already in overbought territory, hinting that upward momentum may soon ease. Still, the upward trajectory shows no signs of weakness and any potential pullbacks may continue to support a "buy the dip" strategy.

On the downside, the 214 area is likely to attract attention, as a break below it could quickly drive prices toward the lower boundary of the channel near 212. If sellers maintain control below that level, indicating a negative trend reversal, the focus may then shift to the key support zone at 209.65.

Overall, GBPJPY has returned to a bullish trajectory, reinforcing its positive trend above recent multi-year highs. While further gains appear likely, a pause or slowdown cannot be ruled out given the overbought conditions and the possibility of FX intervention from Japanese authorities.