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GBP/JPY Price Forecasts: Pound appreciates to 214,00 but remains vulnerable

  • GBP/JPY picks up to 214.00 with momentum indicators still showing a bearish bias.
  • A fragile ceasefire in the Middle East has triggered a moderate appetite for risk
  • The pound remains vulnerable after breaking the near-term trendline support.

The British Pound (GBP) posts moderate gains against the Japanese Yen (JPY) on Tuesday, supported by a modest improvement in risk sentiment. The pair has returned to levels above 214.00 from Monday’s lows in the 213.00 area, but the bullish momentum appears frail.

The Sterling is drawing support from a moderate risk appetite as hostilities in the Middle East ceased, and US President Donald Trump reiterated that a peace deal with Tehran is near. The UK calendar has been thin this week, and all eyes are on the  Manufacturing Production and monthly Gross Domestic Product (GDP) figures, due on Friday. In Japan, GDP data beat expectations on Monday, cementing hopes that the Bank of Japan (BoJ) will hike interest rates after next week’s monetary policy meeting.

Technical Analysis: Bullish momentum remains frail

Chart Analysis GBP/JPY

GBP/JPY trades at 214.07 with the immediate bias still negative, after breaking below the ascending trendline support from mid-May lows. The 4-hour Relative Strength Index (RSI) has eased back toward the mid-40s, and the Moving Average Convergence Divergence (MACD) inches just below the zero line, hinting at neutral-to-bearish momentum.

The Pound has reached the target of a Double Top formation at 215.55 and is correcting higher, but bulls are likely to meet resistance at a previous support area around 214.35 (Jun 3, 4 lows). Further up, the reverse trendline, now at 215.15, is likely to test upside attempts ahead of the mentioned 215.55 level.

On the downside, a break of 213.35 (May 21, 28 lows) would clear the way towards the May 19 lows, near 212.65. Further down, the next target is the May 15 low, at 212.30.

(The technical analysis of this story was written with the help of an AI tool.)

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 Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.06%-0.21%0.00%-0.11%-0.13%-0.36%-0.16%
EUR0.06%-0.13%0.07%-0.05%-0.02%-0.26%-0.06%
GBP0.21%0.13%0.21%0.12%0.04%-0.13%0.06%
JPY0.00%-0.07%-0.21%-0.10%-0.11%-0.34%-0.14%
CAD0.11%0.05%-0.12%0.10%-0.01%-0.22%-0.04%
AUD0.13%0.02%-0.04%0.11%0.01%-0.21%-0.02%
NZD0.36%0.26%0.13%0.34%0.22%0.21%0.19%
CHF0.16%0.06%-0.06%0.14%0.04%0.02%-0.19%

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

Guillermo Alcala

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.

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