|

GBP/JPY Price Forecast: Stalls at 213.00 as bearish flag looms

  • GBP/JPY capped below 213.31 as range trading extends nine days.
  • Bearish flag pattern hints at downside risk if support breaks.
  • Move above 213.00 targets 215.00, below 212.00 exposes deeper losses.

The GBP/JPY consolidates around 213.00 for the second straight day, losses 0.09%, snapping a four-day streak of consecutive gains as traders clash with key resistance at the March 11 peak at 213.31.

GBP/JPY Price Forecast: Technical Outlook

The technical picture shows GBP/JPY trading within the 211.00-213.00 range over the last 9 days, range-bound amid the lack of a clear catalyst. Additionally, it remains within a bearish flag, which, if confirmed, could open the door for further downside.

Momentum, as measured by the Relative Strength Index (RSI), is bullish, but the slope is trending lower, indicating neither buyers nor sellers are in charge.

For a bullish continuation, the GBP/JPY must clear the top of the range at 213.00. Once surpassed, the next stop would be the year-to-date (YTD) high at 215.00.

Downwards, the first area of interest would be the 212.00 figure, right around the bottom trendline of the bearish flag. A breach of the latter will expose the 50-day Simple Moving Average (SMA) at 211.42, ahead of testing the March 16 swing low of 210.81.

GBP/JPY Price Chart – Daily

GBP/JPY Daily Chart

Australian Dollar Price This week

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this week. Australian Dollar was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.01%-0.19%0.19%0.95%1.55%0.96%0.76%
EUR0.01%-0.15%0.24%0.97%1.56%0.99%0.78%
GBP0.19%0.15%0.34%1.14%1.73%1.15%0.88%
JPY-0.19%-0.24%-0.34%0.72%1.34%0.74%0.46%
CAD-0.95%-0.97%-1.14%-0.72%0.61%0.02%-0.20%
AUD-1.55%-1.56%-1.73%-1.34%-0.61%-0.58%-0.85%
NZD-0.96%-0.99%-1.15%-0.74%-0.02%0.58%-0.27%
CHF-0.76%-0.78%-0.88%-0.46%0.20%0.85%0.27%

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 Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (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

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10
Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.
 Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.