GBP/JPY Price Forecast: Rallies to two-week top, above 210.50 amid post-BoJ JPY selloff
- GBP/JPY gains strong positive traction on Friday amid a combination of supporting factors.
- The BoJ’s dovish rate hike weighs on the JPY, while the GBP benefits from BoE rate hike bets.
- The bullish intraday technical setup backs the case for further near-term appreciating move.
The GBP/JPY cross builds on its strong intraday rally and climbs to a nearly two-week top, above mid-210.00s during the early European session on Friday. Spot prices now seem poised to register gains for the first time in three weeks.
The Japanese Yen (JPY) weakened after data released earlier today showed that Japan's National Consumer Price Index (CPI) held steady in August and core inflation remained below the BoJ’s 2% annual target. The JPY selling picked up pace in reaction to the Bank of Japan's (BoJ) surprisingly dovish rate hike to a 31-year high. Meanwhile, the British Pound (GBP) draws support from bets of a potential Bank of England (BoE) rate hike and contributes to the bid tone surrounding the GBP/JPY cross.
From a technical perspective, spot prices now seem to have found acceptance above the 23.6% Fibonacci retracement level of the August-September downfall. Furthermore, the Relative Strength Index (RSI) at 66.53 flirts with overbought territory on the 4-hour chart. Adding to this, the Moving Average Convergence Divergence (MACD) shows the line above the signal and back in positive territory, hinting at improving momentum. This favors GBP/JPY bulls and backs the case for further appreciation.
Any subsequent move up, however, is likely to confront an immediate hurdle near the 100-period Exponential Moving Average (EMA) on the 4-hour chart, at 210.71. This is followed by clustered Fibonacci resistances starting at the 38.2% retracement at 211.06, which keeps the near-term bias capped and slightly bearish despite the latest push higher. That said, a sustained move beyond should pave the way toward the 50.0% level at 212.29, ahead of higher retracements at 213.51, 215.26 and 217.48.
On the downside, immediate support emerges at the 23.6% Fibo. retracement at 209.54, with a deeper structural floor at 207.09. Only a sustained break below these levels would reopen room for a broader corrective slide.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
GBP/JPY 4-hour chart
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 | -0.08% | -0.07% | 0.94% | 0.06% | -0.17% | 0.22% | 0.02% | |
| EUR | 0.08% | 0.00% | 1.01% | 0.12% | -0.12% | 0.32% | 0.10% | |
| GBP | 0.07% | -0.00% | 1.03% | 0.13% | -0.11% | 0.34% | 0.10% | |
| JPY | -0.94% | -1.01% | -1.03% | -0.86% | -1.12% | -0.70% | -0.92% | |
| CAD | -0.06% | -0.12% | -0.13% | 0.86% | -0.26% | 0.17% | -0.06% | |
| AUD | 0.17% | 0.12% | 0.11% | 1.12% | 0.26% | 0.44% | 0.21% | |
| NZD | -0.22% | -0.32% | -0.34% | 0.70% | -0.17% | -0.44% | -0.22% | |
| CHF | -0.02% | -0.10% | -0.10% | 0.92% | 0.06% | -0.21% | 0.22% |
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
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
