GBP/JPY steadies above 20-day SMA near 212.00
- GBPJPY consolidates below 18-year high.
- Trades above all key SMAs, long‑term uptrend remains intact.
- Momentum indicators reflect a bullish‑to‑neutral stance.
GBPJPY is attempting to stabilize above the 20-day simple moving average (SMA) near 212.00, as the pound retraces following the BoE’s dovish hold on Thursday and the yen steadies ahead of Sunday’s general elections in Japan.
The broader bullish bias remains in place, with the pair holding above the long-term ascending trendline drawn from the April lows. However, the formation of a potential triple‑top pattern, given the repeated rejections at the 18‑year high near 214.20, raises the risk of a reversal if confirmed.
Nonetheless, if bullish momentum resumes, the next major upside target is the strong resistance at 214.20, followed by 215.87 and 217.00, which correspond to July 2008 peaks.
That said, technical indicators suggest waning bullish momentum. The MACD remains elevated above zero but is hovering near its red signal line, while the RSI is losing strength despite holding above the 50 neutral threshold.
On the downside, initial support is seen at 210.50, which marks the lower boundary of the current one‑month consolidation range and aligns with the 50-day SMA. Below that, the 209.00-208.10 region, which encompasses the long‑term uptrend line, becomes key; a break beneath this zone could shift the broader outlook to neutral.
Overall, while GBPJPY remains firmly bullish, strong resistance at multi‑year highs continues to cap gains, suggesting a potential period of short‑term consolidation or corrective pullback.
Author
Nicola joined Trading Point as a Market Analyst in January 2025. She holds a BA in English Literature from Kingston University, London, and an MA in Applied Linguistics (Research Methodology) from the University of Southampton with distinction.
