GBP/JPY Price Forecast: Advances above 211.00, over one-week as JPY softens after BoJ
- GBP/JPY turns positive for the third straight day amid the post-BoJ downtick in the JPY.
- Firming BoE rate hike expectations underpin the GBP, contributing to the intraday rise.
- The mixed technical setup warrants some caution before placing aggressive bullish bets.
The GBP/JPY cross attracts some dip-buyers near the 210.60-210.55 region on Friday, turning positive for the third straight day and advancing to an over one-week high during the early part of the European session. Spot prices currently trade around the 211.25-211.30 area, up nearly 0.15% for the day, and remain on track to register modest weekly gains.
The Japanese Yen (JPY) gained briefly after the Bank of Japan (BoJ) left its main rate at 1.25% in a widely anticipated move, but left the door open for future hikes. The initial market reaction, however, turns out to be short-lived as BoJ Governor Kazuo Ueda refrained from offering fresh and definitive clues on the exact timing of the next move. The British Pound (GBP), on the other hand, continues to be underpinned by hawkish Bank of England (BoE) expectations, offering additional support to the GBP/JPY cross.
From a technical perspective, an intraday move beyond the 38.2% Fibonacci retracement level backs the case for additional gains. Moreover, oscillators show constructive momentum, with the Moving Average Convergence Divergence (MACD) staying in positive territory and the Relative Strength Index (RSI) hovering near 56. This improving tone, however, only hints at upside attempts rather than a clear trend shift, while the GBP/JPY cross remains below the critical 200-day Simple Moving Average (SMA).
Meanwhile, any subsequent move up might confront initial resistance at the 50% retracement at 212.20. This is followed by the 200-day SMA at 212.91 and the 61.8% retracement at 213.47, with higher barriers seen at 215.26 and 217.55, representing the 78.6% retracement of the recent swing. On the downside, immediate support emerges at the 38.2% retracement at 210.94, ahead of the 23.6% level at 209.38, with a deeper structural floor near the cycle low around 206.85.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
GBP/JPY daily chart
Pound Sterling Price This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | -0.31% | 0.22% | -0.61% | 0.18% | 0.87% | -0.34% | |
| EUR | -0.16% | -0.49% | 0.00% | -0.82% | -0.06% | 0.65% | -0.56% | |
| GBP | 0.31% | 0.49% | 0.44% | -0.33% | 0.43% | 1.19% | -0.10% | |
| JPY | -0.22% | 0.00% | -0.44% | -0.77% | -0.09% | 0.69% | -0.65% | |
| CAD | 0.61% | 0.82% | 0.33% | 0.77% | 0.72% | 1.41% | 0.23% | |
| AUD | -0.18% | 0.06% | -0.43% | 0.09% | -0.72% | 0.71% | -0.70% | |
| NZD | -0.87% | -0.65% | -1.19% | -0.69% | -1.41% | -0.71% | -1.23% | |
| CHF | 0.34% | 0.56% | 0.10% | 0.65% | -0.23% | 0.70% | 1.23% |
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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
