|

GBP/JPY Price Forecast: Extends advance, eyes on 204.00

  • GBP/JPY closes Thursday at 203.30, up 0.19%, marking a 0.55% weekly rise so far.
  • RSI turns bullish, suggesting buyers may push toward resistance at 203.50 and 204.00 next.
  • Break above 204.00 could open the door to yearly high at 205.32.
  • Downside support seen at 203.00, followed by 202.00 and the 20-day SMA near 201.87.

The GBP/JPY extended its gains on Thursday, ending up 0.19% at around 203.30, up so far in the week close to 0.55%. At the time of writing, as Friday’s Asian session begins, the cross-pair trades at 203.36 virtually unchanged.

GBP/JPY Price Forecast: Technical outlook

From a technical standpoint, the GBP/JPY remains subdued after dropping to a nine-day low of 200.68, in October 17. Nevertheless, the pair has recovered some ground, and it seems poised to test higher prices.

The Relative Strength Index (RSI) shows that buyers are gathering momentum as the RSI is bullish.

With that said, the first resistance would be 203.50. If surpassed the next stop would be 204.00, followed by October 8 yearly high of 205.32. Conversely, if GBP/JPS tumbles below 203.00, the first support would be the 202.00 mark, followed by the  20-day Simple Moving Average (SMA) at 201.87.

GBP/JPY Price Chart – Daily

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 Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD0.42%0.78%1.36%-0.22%-0.36%-0.30%0.40%
EUR-0.42%0.36%1.03%-0.64%-0.68%-0.79%-0.01%
GBP-0.78%-0.36%0.43%-1.00%-1.04%-1.15%-0.39%
JPY-1.36%-1.03%-0.43%-1.62%-1.74%-1.73%-1.05%
CAD0.22%0.64%1.00%1.62%-0.10%-0.15%0.63%
AUD0.36%0.68%1.04%1.74%0.10%-0.11%0.66%
NZD0.30%0.79%1.15%1.73%0.15%0.11%0.77%
CHF-0.40%0.00%0.39%1.05%-0.63%-0.66%-0.77%

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

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

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks
Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.
Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

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.