GBP/JPY Price Analysis: Oscillates around 166.11 amid a risk-off impulse

GBP/JPY erases some of its gains, set to finish the week with more than 3% gains.
GBP/JPY traders mainly ignored UK’s political turmoil.
The cross-currency is range-bound, as depicted by the one-hour chart.

Christian Borjon Valencia FXStreet

The GBP/JPY trims some of its Thursday’s losses but remains nearby weekly highs at around the 166.00 area, despite UK’s political turmoil, weighing on the GBP/USD, the GBP/JPY continues to hold to gains due to the Bank of Japan dovish stance. Therefore, the GBP/JPY is trading at 166.16, below its opening price by 0.33%.

GBP/JPY Price Forecast

The GBP/JPY daily chart was unchanged compared to Thursday, though it should be noted that the exchange rate is above the October 5 high of 165.71, which could keep the GBP/JPY trading within the 165.71-167.27 range. Oscillators remain in positive territory, keeping the neutral-to-upward bias intact, though a break above 167.27 would pave the path to 167.94, ahead of challenging the YTD high at 168.73.

The GBP/JPY one-hour scale portrays the pair consolidating between the 20 and 50-EMAs, while the Relative Strength Index (RSI) is almost flat but at bullish territory. Upwards, the first resistance would be the 20-EMA at 166.42, followed by the daily high at 167.21, ahead of the 168.00 figure.

On the other hand, the GBP/JPY first support would be the daily pivot at 165.45, immediately followed by the 50-EMA at 165.27. Once that 18-pip area cleared, the GBP/JPY could tumble to the 165.00 area, followed by the S1 pivot at 163.59.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	166.12
Today Daily Change	-0.67
Today Daily Change %	-0.40
Today daily open	166.79

Trends
Daily SMA20	161.24
Daily SMA50	162.28
Daily SMA100	163.24
Daily SMA200	160.78

Levels
Previous Daily High	167.29
Previous Daily Low	162.33
Previous Weekly High	165.72
Previous Weekly Low	160.58
Previous Monthly High	167.22
Previous Monthly Low	148.8
Daily Fibonacci 38.2%	165.4
Daily Fibonacci 61.8%	164.22
Daily Pivot Point S1	163.65
Daily Pivot Point S2	160.5
Daily Pivot Point S3	158.68
Daily Pivot Point R1	168.61
Daily Pivot Point R2	170.44
Daily Pivot Point R3	173.58

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD looks inconclusive near 1.1420

EUR/USD trades in a tight range in the low 1.1400s on Tuesday, struggling to gain momentum amid an equally absence of clear direction in the US Dollar (USD). Uncertainty surrounding the US-Iran conflict is capping the pair’s upside, while traders avoid taking significant positions ahead of Thursday’s ECB gathering.

Gold shows signs of life; focus is back to $4,100

Gold gains ground on Tuesday, reversing Monday’s pessimism and advancing toward the $4,100 mark per troy ounce. Nevertheless, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP extends recovery as on-chain activity grows

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.