GBP/JPY Price Forecast: Pound steadies below the 216.35 resistance area
- GBP/JPY extends gains to 216.00 despite mixed UK employment data.
- UK Unemployment rate remained steady at 4.9% in June, against expectations of a decline to 4.8%.
- The Yen has been on its back foot following soft Japanese GDP data released on Monday.
The British Pound (GBP) edges higher against the Japanese Yen (JPY) on Tuesday and extends gains for the third consecutive day, despite the mixed UK employment figures seen earlier on the day. The GBP/JPY pair is trading at 216.00 at the time of writing, with bulls focused on the July 31 high of 216.36.
UK data released earlier on Tuesday revealed that the ILO Unemployment Rate remained steady at 4.9% in the three months to June, against expectations of a slight decline to 4.8%. Employment growth slowed down, but the number of claimants fell unexpectedly, while wage inflation ticked up.
The Yen remains on the back foot after Japanese Gross Domestic Product (GDP) figures, released on Monday, revealed that economic growth slowed down in the second quarter, which will likely hamper the Bank of Japan’s plans to accelerate its monetary tightening cycle.
Technical Analysis: Bulls remain in control, with RSI nearing overbought levels
GBP/JPY trades at 216.05, maintaining a bullish near-term bias after rallying more than 3% from August 2 lows. The Relative Strength Index (14), however, is nearing overbought territory, suggesting that the rally might be overstretched. Beyond that, the Moving Average Convergence Divergence (MACD) indicator has flattened around the zero line, hinting that the latest advance is losing incremental conviction.
On the topside, a breach of the mentioned 216.35 resistance area would expose a previous support between 217.16 (July 29 low) and 217.53 (Jul 21 low), ahead of the July 30 high, near 218.70.
On the downside, a bearish reversal would find support at Monday's low at 215.41, followed by the August 12 low at 214.53 and the August 6 and 7 highs at the 213.230 area.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.11% | 0.16% | -0.07% | 0.02% | 0.42% | -0.00% | |
| EUR | -0.05% | 0.07% | 0.15% | -0.11% | -0.02% | 0.38% | -0.04% | |
| GBP | -0.11% | -0.07% | 0.04% | -0.17% | -0.10% | 0.32% | -0.11% | |
| JPY | -0.16% | -0.15% | -0.04% | -0.22% | -0.14% | 0.26% | -0.16% | |
| CAD | 0.07% | 0.11% | 0.17% | 0.22% | 0.08% | 0.49% | 0.06% | |
| AUD | -0.02% | 0.02% | 0.10% | 0.14% | -0.08% | 0.40% | -0.01% | |
| NZD | -0.42% | -0.38% | -0.32% | -0.26% | -0.49% | -0.40% | -0.41% | |
| CHF | 0.00% | 0.04% | 0.11% | 0.16% | -0.06% | 0.01% | 0.41% |
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
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.
