GBP/JPY Price Forecasts: Pound nears 217.00 with the 217.24 all-time high eyed
- GBP/JPY resumes its broader bullish trend, with the all-time high at 217.22 coming closer.
- BoJ member Asada's dovish comments cast doubt about the bank's monetary tightening plans.
- The pair seems in a 5-wave bullish cycle that might complete at the 218.00 area.
The British Pound (GBP) has resumed its broader uptrend against the Japanese Yen (JPY) on Wednesday, with price action drawing closer to the 217.00 level and the all-time high of 217.22, on the bulls’ focus. Some dovish comments by a Bank of Japan (BoJ) official have cast doubt about the BoJ’s monetary tightening plans and added pressure on an already weak Yen.
Earlier on Wednesday, the Japanese central bank’s committee member Toichiro Asada, the lone vote opposing June’s interest rate hike, affirmed that he needs to see evidence of demand-driven inflation to support further monetary tightening.
Asada is the latest appointment to the bank's government board, and has been hand-picked by Prime Minister Sanae Takaichi, who has repeatedly voiced her preference for low interest rates to promote economic growth. The BoJ official assured that he is “not always opposed” to rate hikes, but these comments are seen as a token of political pressure on the central bank that might curb plans to normalize monetary policy.
Technical Analysis: The Pound might reach fresh highs around 218.00
GBP/JPY trades at 216.89 with a bullish near-term bias as dips have been contained well above previous highs in the 216.00 area. The four-hour chart shows the Relative Strength Index (14) around 66.72, highlighting strong momentum, although the neutral Moving Average Convergence Divergence (MACD) casts a shadow over the strength of the current rally.
Bulls are testing the 217.00 level, ahead of the mentioned high at 217.22. Above here, the pair would enter uncharted territory. A wider picture, however, suggests t that the pair might be in the fifth wave of an Elliot Wave bullish cycle, with the 127.2% retracement of last week's reversal in the 218.00 area, as a plausible target.
Supports are at Tuesday's low of 216.41 and the July 2 highs at the 216.00 area. Further down, the July 2 and 3 lows between 214.70 and 214.80 would come into focus.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.06% | 0.18% | -0.24% | 0.07% | -0.49% | -0.07% | |
| EUR | -0.00% | 0.05% | 0.20% | -0.25% | 0.07% | -0.49% | -0.07% | |
| GBP | -0.06% | -0.05% | 0.13% | -0.30% | 0.00% | -0.54% | -0.15% | |
| JPY | -0.18% | -0.20% | -0.13% | -0.43% | -0.10% | -0.68% | -0.27% | |
| CAD | 0.24% | 0.25% | 0.30% | 0.43% | 0.33% | -0.25% | 0.16% | |
| AUD | -0.07% | -0.07% | -0.01% | 0.10% | -0.33% | -0.56% | -0.18% | |
| NZD | 0.49% | 0.49% | 0.54% | 0.68% | 0.25% | 0.56% | 0.39% | |
| CHF | 0.07% | 0.07% | 0.15% | 0.27% | -0.16% | 0.18% | -0.39% |
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
Guillermo Alcala
FXStreet
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.
