GBP/JPY Price Forecast: Rebounds above 207.00 as oversold risk eases

GBP/JPY recovers as RSI climbs away from oversold territory.
Break above 209.58 could reopen the path toward 210.00.
Bulls need 213.22 reclaimed to challenge broader bearish trend.

Christian Borjon Valencia FXStreet

The GBP/JPY edges higher by about 0.29% on Tuesday, even as risk appetite has shifted to the sour side due to geopolitical developments that are driving global bond yields higher amid inflation fears. At the time of writing, the cross-pair trades at 209.02 after bouncing off daily lows of 208.25.

GBP/JPY Price Forecast: Technical Outlook

Price action in the daily chart shows that the cross is trending lower, following two interventions in the FX markets. This sent GBP/JPY tumbling from around yearly highs near 220.00 to current spot prices, for a loss of over 1,300 pips.

The Relative Strength Index (RSI) remains bearish, though momentum tilted modestly upwards after the index crossed from below 30 to nearly 34. Hence, in the short term, GBP/JPY could aim higher, challenging key resistance levels.

If GBP/JPY crosses the August 3 daily low of 209.58, it opens the door to test 210.00. Even though that is positive for bulls, to change the trend, they must surpass the 200-day Simple Moving Average (SMA) at 213.22, paving the way towards the 215.00 mark.

GBP/JPY Price Chart – Daily

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		0.06%	0.16%	0.50%	0.14%	0.12%	0.30%	0.16%
EUR	-0.06%		0.11%	0.43%	0.08%	0.06%	0.26%	0.11%
GBP	-0.16%	-0.11%		0.29%	-0.05%	-0.05%	0.13%	-0.01%
JPY	-0.50%	-0.43%	-0.29%		-0.34%	-0.35%	-0.16%	-0.31%
CAD	-0.14%	-0.08%	0.05%	0.34%		-0.01%	0.18%	0.02%
AUD	-0.12%	-0.06%	0.05%	0.35%	0.01%		0.19%	0.03%
NZD	-0.30%	-0.26%	-0.13%	0.16%	-0.18%	-0.19%		-0.14%
CHF	-0.16%	-0.11%	0.00%	0.31%	-0.02%	-0.03%	0.14%

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

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD softens as risk-off mood meets FOMC countdown

The Aussie Dollar loses 0.11% against the Greenback on Tuesday as risk appetite remains negative amid calls from AI company CEOs to slow development, while the FOMC monetary policy meeting looms. Expectations for a Fed rate hike undermine the AUD/USD, which trades at 0.7130.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Ethereum continues to attract capital despite impending rate hike and Clarity Act failure

Ethereum declined to $2,400 on Tuesday after the Clarity Act failed to progress in the Senate. Despite that and the market's near certainty of an interest rate hike at the next Federal Reserve (Fed) meeting, the top altcoin has continued to attract fresh capital. Ethereum buyers have been dominating sellers over the past few days.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.