|

GBP/JPY Price Analysis: Rebounds but faces stiff resistance at 211.00

  • GBP/JPY bounces from 100-day SMA as sentiment improves cautiously.
  • RSI remains below 50, indicating bearish momentum still in control.
  • Break above 212.00 needed to target 213.31 resistance level.

The GBP/JPY edges higher by nearly 0.60% on Wednesday as the market mood improved amid speculation of a possible end to Iran’s war. Although the pair found support at the 100-day Simple Moving Average (SMA) at 210.08, sentiment remains fragile amid geopolitical uncertainty.

GBP/JPY Price Analysis: Technical Outlook

After clearing the bottom of a bearish flag, the GBP/JPY rallied and faces key resistance at the 50-day Simple Moving Average (SMA) at 211.28, as buyers targeted the 20-day SMA at 212.02. Despite the advance, momentum seems tilted to the downside as the Relative Strength Index (RSI) points lower and remains below its neutral level, suggesting bears are in charge.

For a bullish continuation, the GBP/JPY must clear the 50-day SMA and extend its gains towards the March 30 high at 212.71, above the bearish flag support trendline, which is now turning into resistance. In that outcome, the next area of interest would be the March 26 high at 213.31.

On the other hand, a move lower beneath the March 31 swing low of 209.63 could open the door to challenge the year-to-date (YTD) low of 207.23. On further weakness, the 200-day SMA at 204.95 is up next.

GBP/JPY Price Chart – Daily

GBP/JPY Daily Chart

Japanese Yen Price This week

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.77%-0.35%-0.90%-0.07%-0.87%-0.04%-0.31%
EUR0.77%0.42%-0.18%0.70%-0.11%0.73%0.46%
GBP0.35%-0.42%-0.53%0.27%-0.54%0.30%-0.00%
JPY0.90%0.18%0.53%0.85%0.07%0.88%0.52%
CAD0.07%-0.70%-0.27%-0.85%-0.83%0.02%-0.28%
AUD0.87%0.11%0.54%-0.07%0.83%0.84%0.53%
NZD0.04%-0.73%-0.30%-0.88%-0.02%-0.84%-0.31%
CHF0.31%-0.46%0.00%-0.52%0.28%-0.53%0.31%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Christian Borjon Valencia

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

More from Christian Borjon Valencia
Share:

Editor's Picks

GBP/USD keeps the bid bias near 1.3550

GBP/USD leaves behind part of the recent three-day retracement and hovers around the 1.3550 region on Monday. The Greenback’s fresh downward trend helps Cable and the rest of the risk complex recoup part of the recent ground lost while attention remains on the potential Fed rate path.

EUR/USD retakes 1.1600; looks at the 200-day SMA

EUR/USD manages to gather fresh steam and advances past the 1.1600 hurdle as Monday’s NA session draws to a close. Indeed, the pair patially reverses Friday’s sharp retracement amid the renewed downside momentum in the US Dollar. Moving forward, the flash Inflation Rate in the euro zone and US JOLTs and the ISM Manufacturing should keep investors entertained on turnaround Tuesday.

Gold: Is the bullish run over?

Gold adds to Friday’s marked decline, although it has managed to bounce off earlier lows in the sub-$4,400 region per troy ounce on Monday. The yellow metal’s pullback comes despite the softer stance in the US Dollar and steady uncertainty in the Middle East, although rising yields keep bulls at bay for now.

Bitcoin and Gold Outlook: BTC clings to support, XAU slides as US-Iran tensions re-escalate
Bitcoin (BTC) maintains stability above $78,000 support on Monday as crypto prices broadly consolidate. Gold (XAU/USD), meanwhile, holds above $4,400, marking two consecutive days of declines. Sentiment in the broader cryptocurrency market remains broadly positive, with the Fear & Greed Index holding at 62 on Monday, down slightly from 69 the previous day.
Oil rallies on fresh persian gulf strikes
Energy prices are trading firmer this morning after the US carried out targeted strikes against Iran, drawing retaliatory strikes and reinforcing concerns about a prolonged stalemate in the Persian Gulf. Oil prices started the week stronger following the first military strikes between the US and Iran in a month. ICE Brent briefly moved back above US$90/bbl in early morning Asia trading.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.