|

GBP/JPY Price Forecast: Clears 50-day SMA, yet flatlines below 214.00

  • GBP/JPY holds above 50-day SMA as 213.50 caps upside.
  • RSI flat near 50 shows buyers and sellers remain balanced.
  • Break above 214.00 exposes 214.43 and 215.00 resistance levels.

The GBP/JPY hovers around 213.50 on Wednesday, finishing the session barely unchanged, up a mediocre 0.04% as the Yen weakened against most G10 FX currencies. Sellers' failure to drive the cross-pair below the 50-day Simple Moving Average (SMA) at 213.16 opened the door for a recovery, with buyers eyeing the 214.00 mark.

GBP/JPY Price Forecast: Technical outlook

Following the April 30 intervention, the GBP/JPY bottomed around 210.00-212.00, with buyers pushing the spot price past the 50-day SMA but capped on the upside by the psychological 213.50 level.

The Relative Strength Index (RSI) shows that neither buyers nor sellers are in control, with the indicator flat around the 50 neutral level.

Above, the first resistance for GBP/JPY is at 214.00. A breach of the latter exposes the May 11 daily high of 214.43, followed by the 215.00 psychological level. Once cleared, overhead lies the year-to-date (YTD) high at 216.60.

For a bearish resumption, GBP/JPY must drop below the 50-day SMA and also clear the 213.00 mark. Below, the next area of interest is the 100-day SMA at 212.19, before the pair extended its losses towards the May 6 swing low at 210.76.

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 British Pound.

USDEURGBPJPYCADAUDNZDCHF
USD0.26%0.20%0.74%0.18%-0.51%0.03%0.47%
EUR-0.26%-0.07%0.55%-0.10%-0.79%-0.25%0.20%
GBP-0.20%0.07%0.11%-0.05%-0.74%-0.19%0.26%
JPY-0.74%-0.55%-0.11%-0.63%-1.27%-0.72%-0.25%
CAD-0.18%0.10%0.05%0.63%-0.58%-0.08%0.29%
AUD0.51%0.79%0.74%1.27%0.58%0.55%0.98%
NZD-0.03%0.25%0.19%0.72%0.08%-0.55%0.43%
CHF-0.47%-0.20%-0.26%0.25%-0.29%-0.98%-0.43%

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 recovers above 1.3200 as USD loses traction

GBP/USD is rebounding toward 1.3250 in the European session on Monday. The pair recovers ground as the US Dollar uptrend falters and traders resort to profit-taking ahead of Tuesday's US-Iran peace talks and Fed Chair Kevin Warsh's appearance on Wednesday at the ECB Forum.

EUR/USD regains 1.1400 amid renewed US Dollar weakness

EUR/USD is attempting a tepid bounce above 1.1400 in European trading on Monday, helped by a broadly weaker US Dollar. Traders continue to assess the developments surrounding talks to end the US war with Iran. The European Central Bank's annual forum and the US June employment data will be the highlights later this week.

Gold stays in red near $4,050 as US-Iran clash revives inflation fears

Gold price remains in the negative territory around $4,050 in Monday's European trading. The bullion struggles as military clashes between the United States and Iran in the strategic Strait of Hormuz have revived inflation concerns, bolstering Fed rate hike expectations. However, a broad US Dollar retreat is helping limit Gold's downside.

BTC rebounds; ETH and XRP defend key support following recent correction

Bitcoin, Ethereum and Ripple are showing early signs of stabilization after a correction of nearly 6%, 8% and 7% respectively, over the previous week. BTC reclaims $60,000, ETH is holding firmly above the critical $1,500 support level, while XRP is also attempting to stabilize around the key $1.00 psychological level.

How Kevin Warsh upended the game plan for Gold
Something is breaking inside the Federal Reserve's new strategy, signaling a massive regime change for macro markets. Under the leadership of newly appointed Fed Chair Kevin Warsh, the traditional framework of forward guidance and predictable rate paths could be dismantled soon.
Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.