GBP/JPY Price Forecast: Slides, as BoJ hawkish stance underpins Yen

GBP/JPY falls as tightening expectations at the Bank of Japan lift Yen demand.
Soft UK employment data deepens Sterling losses against Yen and Dollar.
Break below 207.00 may open path toward 200-day SMA near 202.40.

Christian Borjon Valencia FXStreet

GBP/JPY retreats during the North American session, down over 0.61% as the Japanese Yen (JPY) appreciates on speculation that the Bank of Japan will raise rates at least twice during the year. Weaker than expected UK jobs data, weighed on Sterling, which depreciated sharply against the Yen and the Dollar.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY is neutral biased, but in the short term is testing key support trendline seen at around the 207.00-207.30 area. Converging towards that area is the 100-day SMA, which if cleared, could exacerbate a deeper pullback towards the 200-day SMA at 202.39.

The Relative Strength Index (RSI) is bearish, but its slope turned flat, a sign that further consolidation lies ahead.

Conversely, for a bullish continuation, the GBP/JPY must clear the 210.00 milestone. Once surpassed, the next resistance would be the 50-day SMA at 210.95, followed by the 20-day SMA at 211.24.

GBP/JPY Price Chart — Daily

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.01%	0.47%	-0.12%	0.03%	-0.12%	-0.26%	0.13%
EUR	-0.01%		0.46%	-0.16%	0.02%	-0.14%	-0.27%	0.11%
GBP	-0.47%	-0.46%		-0.60%	-0.44%	-0.60%	-0.73%	-0.35%
JPY	0.12%	0.16%	0.60%		0.18%	0.02%	-0.12%	0.27%
CAD	-0.03%	-0.02%	0.44%	-0.18%		-0.15%	-0.30%	0.09%
AUD	0.12%	0.14%	0.60%	-0.02%	0.15%		-0.13%	0.25%
NZD	0.26%	0.27%	0.73%	0.12%	0.30%	0.13%		0.38%
CHF	-0.13%	-0.11%	0.35%	-0.27%	-0.09%	-0.25%	-0.38%

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

FXStreet

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

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