GBP/JPY sticks close to 197.00 as Yen weakens further

GBP/JPY recovers to familiar highs as JPY recedes.
Japanese GDP growth contracted faster than expected.
Sterling traders looking ahead to next week’s UK CPI inflation.

Joshua Gibson FXStreet

After recovering from a mid-week pullback, GBP/JPY scrambled back towards the 197.00 handle on Thursday. The pair regained ground after Japan’s Gross Domestic Product (GDP) for the first quarter contracted faster than investors expected, further weakening the Japanese Yen (JPY).

Japan reported a -0.5% contraction in Q1 GDP, a deeper growth pullback than median market forecasts of -0.4%. The previous quarter also saw a small downside revision, to 0.0% from the initial print of 0.1%.

Little else of note remains on the economic calendar this week for the Guppy, leaving Sterling traders to focus on next week’s upcoming UK Consumer Price Index (CPI) inflation update. Bank of England (BoE) Governor Andrew Bailey will also be making an appearance, and traders are expected to look for clues about the BoE’s possible path toward rate cuts. BoE Governor Bailey will be speaking at the London School of Economics next Tuesday.

GBP/JPY technical outlook

The Guppy is back into chart paper near the 197.00 handle on Thursday after catching a technical bounce from the 200-hour Exponential Moving Average (EMA) near 195.50. The pair fell in a near-term pullback after intense buying dragged the pair 3% higher from the last swing low into 191.50, but bulls are stepping back in to force the Yen lower against the GBP.

GBP/JPY hourly chart

GBP/JPY daily chart

GBP/JPY

Overview
Today last price	196.89
Today Daily Change	0.41
Today Daily Change %	0.21
Today daily open	196.48

Trends
Daily SMA20	194.32
Daily SMA50	192.33
Daily SMA100	189.74
Daily SMA200	186.73

Levels
Previous Daily High	197.1
Previous Daily Low	195.86
Previous Weekly High	195.34
Previous Weekly Low	191.73
Previous Monthly High	200.59
Previous Monthly Low	190
Daily Fibonacci 38.2%	196.33
Daily Fibonacci 61.8%	196.62
Daily Pivot Point S1	195.86
Daily Pivot Point S2	195.24
Daily Pivot Point S3	194.62
Daily Pivot Point R1	197.1
Daily Pivot Point R2	197.72
Daily Pivot Point R3	198.34

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.