GBP/JPY slips as UK political turmoil fuels Yen demand
- GBP/JPY slips as political uncertainty around Keir Starmer weighs on Pound sentiment.
- Bulls stall near 214.00 after repeated failures to push toward yearly highs above 215.00.
- RSI prints lower highs, signaling fading momentum and rising downside risk toward key moving averages.
The Pound Sterling retreats 0.21% during the North American session as political turmoil in the UK, surrounding the Prime Minister Keir Starmer, pushed the GBP/JPY downwards. At the time of writing, the cross-pair trades at 213.51 after reaching a daily high of 214.44.
GBP/JPY Price Forecast: Technical outlook
During the last four trading days, the GBP/JPY achieved successive daily highs near 213.80, with the pair unable to crack decisively the 214.00 figure. At the same time, the pair dipped to a five-day low of 211.61, before resuming upwards but so far bulls lacked the strength to break to new yearly highs past the current one at 215.00. A breach of the latter will expose the 215.50 figure, followed by 216.00.
From a momentum standpoint, the Relative Strength Index (RSI) recorded successive series of lower highs, an indication that sellers are gathering momentum.
If the GBP/JPY drops below 213.00, the immediate support would be the 20-day Simple Moving Average (SMA) at 212.57. Once surpassed the next stop would be the 50-day SMA at 210.80.
GBP/JPY Daily Chart
Japanese Yen Price This week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.00% | 0.00% | -0.00% | -0.01% | -0.01% | 0.02% | |
| EUR | -0.02% | 0.00% | -0.04% | -0.03% | -0.02% | -0.01% | 0.02% | |
| GBP | -0.01% | -0.00% | -0.04% | -0.04% | -0.01% | -0.01% | 0.01% | |
| JPY | 0.00% | 0.04% | 0.04% | 0.00% | -0.01% | -0.01% | 0.03% | |
| CAD | 0.00% | 0.03% | 0.04% | -0.00% | -0.00% | 0.00% | 0.03% | |
| AUD | 0.01% | 0.02% | 0.01% | 0.00% | 0.00% | 0.00% | 0.08% | |
| NZD | 0.01% | 0.00% | 0.00% | 0.00% | -0.00% | -0.01% | 0.02% | |
| CHF | -0.02% | -0.02% | -0.01% | -0.03% | -0.03% | -0.08% | -0.02% |
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.
