GBP/JPY Price Forecast: Bulls are testing 207.35 resistance area
- The Pound is trading higher against the Yen with bulls eyeing multi-month highs at 207.35.
Risk appetite and easing concerns about the UK's fiscal deficit are supporting the Sterling. - GBP/JPY bulls are testing the top of an ascending triangle pattern.
The Pound has opened the week on a mild positive note, while the Japanese Yen drops across the board amid the positive market mood. The pair is trending higher, after bouncing at 206.20 lows on Friday, with bulls eyeing 17-month highs, at 207.35.
The fundamental context remains pound-supportive. Investors are moderately lenient to risk, and, in the UK, the tax-rising budget released by Chancellor Rachel Reeves last week has soothed concerns about the UK’s fiscal deficit, increasing speculative demand for the Pound.
Technical analysis: GBP/JPY is at the top of an ascending triangle pattern
The pair remains bid in a doleful week opening, with bulls aiming to retest the top of an ascending triangle pattern at the 207.35 area, which has capped upside attempts several times in late November and early December.
The 4-hour chart shows the pair trading at 207.10 at the time of writing, showing marginal gains on a daily basis. The Moving Average Convergence Divergence (MACD) remains flat around the zero line, reinforcing a neutral tone, while the Relative Strength Index (RSI), at 58.64, is positive without an overbought stretch.
A successful breach of the mentioned 207.35 area clears the path towards the 2024 peak, which coincides with the 127.2% Fibonacci extension of the November 20-26 rally at the 208.15 area. Further up, the 161.8% extension of the same cycle is at 209.15. The triangle’s measured target is at 210.30.
To the downside, the rising trend line from the November 21 low underpins the bias, offering support near 206.00, with horizontal backup at 205.18 (December 1 low) and the mentioned November 21 low, at the 204.30 area.
(The technical analysis of this story was written with the help of an AI tool).
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | 0.09% | 0.09% | -0.05% | 0.03% | -0.21% | 0.00% | |
| EUR | 0.06% | 0.15% | 0.14% | 0.00% | 0.09% | -0.15% | 0.07% | |
| GBP | -0.09% | -0.15% | 0.00% | -0.14% | -0.06% | -0.30% | -0.10% | |
| JPY | -0.09% | -0.14% | 0.00% | -0.12% | -0.05% | -0.29% | -0.09% | |
| CAD | 0.05% | -0.01% | 0.14% | 0.12% | 0.08% | -0.17% | 0.04% | |
| AUD | -0.03% | -0.09% | 0.06% | 0.05% | -0.08% | -0.24% | -0.04% | |
| NZD | 0.21% | 0.15% | 0.30% | 0.29% | 0.17% | 0.24% | 0.20% | |
| CHF | -0.00% | -0.07% | 0.10% | 0.09% | -0.04% | 0.04% | -0.20% |
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
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
