The GBP/JPY rotates for the third straight day, as a ‘bullish harami’ chart pattern opens the door for further upside, but intervention fears by Japanese authorities cap the cross-pair advance. The GBP/JPY trades at 218.17, unchanged.
GBP/JPY Price Forecast: Technical outlookThe GBP/JPY found its floor at around 218.00, as sellers failed to drive the cross-pair below it, despite breaking a key support trendline three days ago. One reason for sellers’ weakness is speculation that the Bank of England could raise rates, which could favour some upside.
On the other hand, the GBP/JPY has failed to gain traction above 219.00 amid speculation of Japanese Yen intervention to strengthen the Japanese Yen.
For a bullish continuation, the GBP/JPY must clear 219.00 and the year-to-date (YTD) high at 219.61. Once hurdled, the next area of interest would become the 220.00 milestone.
On the flip side, bears must clear the July 21 low of the day (LOD) at 217.53 to challenge 216.60, the April 30 daily high-turned-support.
GBP/JPY Price Chart – Daily
GBP/JPY daily chart 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 New Zealand Dollar.
USDEURGBPJPYCADAUDNZDCHFUSD0.31%0.45%0.43%-0.02%0.43%0.77%0.32%EUR-0.31%0.15%0.15%-0.34%0.12%0.48%0.00%GBP-0.45%-0.15%0.00%-0.50%-0.03%0.34%-0.15%JPY-0.43%-0.15%0.00%-0.45%-0.01%0.34%-0.13%CAD0.02%0.34%0.50%0.45%0.44%0.80%0.33%AUD-0.43%-0.12%0.03%0.01%-0.44%0.35%-0.10%NZD-0.77%-0.48%-0.34%-0.34%-0.80%-0.35%-0.49%CHF-0.32%-0.00%0.15%0.13%-0.33%0.10%0.49% 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).
GBP/JPY holds firm on Wednesday, with the cross-pair trading above the 218.00 figure, as sellers seem to have the upper hand, after a break of a key support trendline, which could open the door for further losses. At the time of writing, the cross trades at 218.16, down 0.05%.
GBP/JPY Price Forecast: Technical outlookAfter reaching a yearly high of 219.61, GBP/JPY retreated 150 pips to the current exchange rate, opening the door for further downside.
The Relative Strength Index (RSI) remains bullish, but it is aiming lower, approaching the 50-neutral level, which could open the door to further downside. However, the market structure suggests that the downtrend stays intact.
For a bearish reversal, if GBP/JPY drops below the July 21 daily low of 217.53. A breach of the latter will expose the April 30 high of 216.60, followed by the 216.00 mark. Below, the next support would be the 50-day Simple Moving Average (SMA) at 215.09, followed by the 100-day SMA at 214.12.
Conversely, if GBP/JPY reaches 219.00, this opens the door to challenge the year-to-date (YTD) high at 219.61, followed by the 220.00 psychological level.
GBP/JPY Price Chart – Daily
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 Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD0.15%0.61%0.51%0.51%-0.41%0.32%0.76%EUR-0.15%0.46%0.28%0.37%-0.56%0.17%0.61%GBP-0.61%-0.46%-0.17%-0.11%-1.01%-0.29%0.19%JPY-0.51%-0.28%0.17%0.09%-0.86%-0.20%0.37%CAD-0.51%-0.37%0.11%-0.09%-0.87%-0.31%0.30%AUD0.41%0.56%1.01%0.86%0.87%0.73%1.21%NZD-0.32%-0.17%0.29%0.20%0.31%-0.73%0.48%CHF-0.76%-0.61%-0.19%-0.37%-0.30%-1.21%-0.48% 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).
The GBP/JPY consolidates around 218.20 as the Pound Sterling loses momentum amid the new PM, Andy Burnham, taking office. Fears of a possible intervention by Japanese authorities capped the cross-pair advance, which remains trading near year-to-date (YTD) highs seen on July 15.
GBP/JPY Price Forecast: Technical outlookThe ongoing pullback during the last four trading days stalled near the 217.50 area, at around the low of the day (LOD) of 217.53. Since then, GBP/JPY has bounced and reclaimed the 218.00 level, increasing buyers’ chances of testing higher prices.
The Relative Strength Index (RSI) shows that momentum is bullish, though it has turned flat, suggesting the cross could trade sideways.
For a bullish continuation, GBP/JPY needs to surpass the 218.50 psychological level before 219.00. Once breached, the next stop would be the YTD high of 219.61, ahead of 220.00.
On the downside, a decisive break below the July 21 low of 217.53 opens the path to challenge 217.00. Below lies the April 30 high-turned-support at 216.60, followed by the 50-day Simple Moving Average (SMA) at 215.00.
GBP/JPY Price Chart – Daily
GBP/JPY daily chart Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
USD/JPY has finally broken higher after weeks of compression, with easing bearish sentiment towards the Japanese yen adding fuel to the rally. While the US dollar led the move, the technical backdrop also favours further upside for GBP/JPY, although crude oil prices remain a key variable for CAD/JPY bears.
Source: LSEG
View related analysis:
US Dollar Bulls Lose Momentum, Commodity FX Defies Positioning | COT Report Australian Dollar Outlook: AUD/USD Bulls Hold the Edge Ahead of Jobs Data Nasdaq Could Look to KOSPI for Directional Clues Beyond Earnings Canadian Dollar Slides as Soft CPI and Trump Tariffs Lift USD/CAD USD/JPY Leads as Japanese Yen Weakness Keeps GBP/JPY and CAD/JPY in Focus It only seemed a matter of time before volatility erupted on USD/JPY, given the compression pattern beneath its 39-year high. Momentum ultimately broke to the upside, helped by a strong session for the US dollar amid the latest flare-up in Middle East tensions.
As noted in this week’s COT report, net-short exposure to the Japanese yen has moved away from a sentiment extreme. That removes some pressure from bearish yen positions and gives the USD/JPY breakout more breathing room. The question now is whether other currencies, such as the British pound or Canadian dollar could also take advantage of the weaker yen.
Source: CFTC (COT), LSEG
For traders wanting a deeper understanding of futures positioning, I’ve also published a guide on how to read and interpret weekly COT data in forex markets.
USD/JPY Tests Trendline Resistance After Breakout Regular readers will know I am not an advocate of trendlines, but I concede they deserve attention from time to time. In this case, a trendline projected from the January high coincides with Tuesday's high, making it a valid interim resistance level. It is also one that could break, given the strength of the move out of the compression pattern.
The monthly R1 pivot (163.72) and 165.30 may be the next resistance levels for bulls if the trendline breaks. That said, prices appear stretched on the 1-hour chart, while bearish RSI divergences have formed in overbought territory, raising the potential for a near-term pullback. Bulls could look to buy dips within Tuesday's range, with 163 potentially providing support.
Source: ICE, TradingView
GBP/JPY Bulls Eye 219 as British Pound Holds the Advantage The GBP/JPY uptrend on the daily chart speaks for itself, with bullish momentum accelerating from the June low. Prices have retraced to the 10-day EMA and the monthly R2 pivot, while Tuesday's wide-legged doji has caught my eye as it hints at a swing low forming within a strong uptrend.
Price action on the 1-hour chart appears corrective, given the overlapping nature of the decline. Moreover, elevated volumes accompanied the swing low, reinforcing my suspicion of bullish accumulation above 217.50. GBP/JPY is now attempting to form a higher low around the 218.00 handle and the weekly pivot point.
Ultimately, my near-term bias for the British pound against the Japanese yen remains bullish while prices hold above Tuesday's low, with a move to 219.00 as the minimum upside target. Note the July 2007 low at 219.036 and the 219.61 high as additional resistance levels ahead of the weekly R1 pivot just below 220.00.
Source: ICE, TradingView
CAD/JPY Reversal Pattern Faces Crude Oil Headwind The daily chart shows an evening star pattern (a three-bar bearish reversal) forming around the 116.00 handle, warning that a top may be in place. Tuesday's small bullish inside day represents a lacklustre attempt by bulls to reclaim lost ground, and the fact it closed around the monthly R1 pivot suggests CAD/JPY could be gearing up for another leg lower.
However, rising crude oil prices are a fly in the ointment for CAD/JPY bears. As a major oil exporter, Canada typically benefits from higher crude oil prices, which can underpin the Canadian dollar against the Japanese yen. If crude oil continues to rally, it could support CAD/JPY, or at least make life more difficult for bears. Conversely, if Middle East tensions ease and crude oil prices retreat, it could pave the way for the next leg lower in CAD/JPY.
A break below the weekly pivot point (115.31) would bring the weekly S1 level and monthly pivot point into focus near 114.50.
The Pound Sterling registers losses against the Japanese Yen for the third consecutive trading day, doon 0.15% as traders digest the first speech of new Prime Minister Andy Burnham, who is naming the first members of his cabinet. The GBP/JPY trades at 218.13 after reaching a daily high of 218.84.
GBP/JPY Price Forecast: Technical outlookLast week, the GBP/JPY bounced off a daily low on July 15 and hit a new yearly high of 219.61, opening the door to a consolidation as bullish momentum faded.
The Relative Strength Index (RSI) shows that buyers remain in charge, as the index, after briefly dipping, is poised to resume its upward trajectory, an indication that further upside is in the cards.
For a bullish continuation, the GBP/JPY must reclaim 219.00. A breach of the latter exposes the 219.50 area, ahead of 220.00. On further strength, the next resistance would be the psychological 221.00.
Downwards, the first support is the July 9 high at 218.01. If sellers clear the latter, the 217.00 is up next, followed by a move towards April’s 30 daily high-turned-support at 216.60. Once surpassed, the next area of interest for GBP/JPY would be the July 2 high, now turned support, at 216.06.
GBP/JPY Price Chart — Daily
GBP/JPY daily chart Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
GBP/JPY wavers around 218.50, with bears contained above previous highs at 218.00.
The Pound picks uop across the board with markets awaiting Andrew Burnham's nomination as next PM.
The British Pound (GBP) is trading practically flat against the Japanese Yen (JPY) on Monday, with the GBP/JPY pair wavering around 218.50, holding comfortably above previous highs at the 218.00 area, and with last week’s long.term high at 219.63 within a short distance.
The Pound Sterling remains moderately bid with investors bracing for the nomination of former Mayor of Manchester, Andy Burnham, as the next Prime Minister. Burnham pledged in an interview with The Times newspaper a 10-year plan to “rewire” the UK after having assured markets that he will pursue responsible fiscal policy.
In Japan, markets are closed for the Marine Day holiday, which is keeping market volatility low and the Japanese Yen moving within tight ranges so far.
Technical Analysis: Bulls remain focused on the 219.63 high
GBP/JPY trades at 218.69, retaining a bullish near-term bias with price action supported by an ascending trendline from late June lows. The 4-hour Relative Strength Index (14) around 58 suggests underlying buying interest, while the slightly negative Moving Average Convergence Divergence (MACD) reading hints at a shallow corrective pressure rather than a decisive reversal.
Bulls remain capped below session highs at 218.85, although the main focus remains on last week's high, at 219.63. Above here, the next target might be at the 127.2% Fibonacci extension of the July 10-15 rally, at 220.45.
On the downside, initial support is seen at the confluence between trendline support, now around 218.15, and Friday's trading floor, in the area of 218. A bearish reversal below here would expose the July 7 and 10 lows, near 216.40.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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 Euro.
USDEURGBPJPYCADAUDNZDCHFUSD0.07%-0.09%0.02%0.06%-0.24%-0.09%0.09%EUR-0.07%-0.13%-0.06%-0.03%-0.31%-0.19%0.00%GBP0.09%0.13%0.09%0.12%-0.18%-0.04%0.13%JPY-0.02%0.06%-0.09%0.05%-0.25%-0.08%0.06%CAD-0.06%0.03%-0.12%-0.05%-0.30%-0.13%0.00%AUD0.24%0.31%0.18%0.25%0.30%0.16%0.34%NZD0.09%0.19%0.04%0.08%0.13%-0.16%0.15%CHF-0.09%-0.01%-0.13%-0.06%-0.00%-0.34%-0.15% 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).
The GBP/JPY retreats some 0.34% on Thursday after the pair reached a new 18-year high of 219.62 on Wednesday. Nevertheless, at the time of writing, the cross-pair retreated to 218.80, down 0.34%, as the Yen recovers some ground.
GBP/JPY Price Forecast: Technical outlookThe GBP/JPY trend is up, even though it fell short of breaking 220.00, which could’ve opened the door for further gains. Momentum, as measured by the Relative Strength Index (RSI), is bullish, and as of writing, the index is dipping ahead of turning overbought. This triggered a leg down in the GBP/JPY pair, though further upside is seen.
Ahead of Friday’s Asian session, the first key resistance level is 219.00. If GBP/JPY clears that level, the 18-year high of 219.61 is up next, ahead of challenging the 22.00 mark. A decisive breach of the psychological 220.50 will expose the 221.00 level ahead.
On the other hand, if the retreat of GBP/JPY extends past 218.00, a move lower towards the April 30 high, which turned support at 216.60, is likely. If hurdled, the next area of interest would be the 216.00 figure, ahead of the 50-day Simple Moving Average (SMA) at 214.72.
GBP/JPY Price Chart — Daily
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 Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD-0.35%-0.67%0.37%-0.80%-0.71%-1.27%0.10%EUR0.35%-0.31%0.74%-0.46%-0.40%-0.94%0.46%GBP0.67%0.31%1.01%-0.13%-0.09%-0.61%0.82%JPY-0.37%-0.74%-1.01%-1.26%-1.08%-1.69%-0.32%CAD0.80%0.46%0.13%1.26%0.17%-0.46%0.96%AUD0.71%0.40%0.09%1.08%-0.17%-0.54%0.77%NZD1.27%0.94%0.61%1.69%0.46%0.54%1.46%CHF-0.10%-0.46%-0.82%0.32%-0.96%-0.77%-1.46% 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).
GBP Talking Points: The British Pound retains relative strength, with GBP/USD setting a fresh monthly high yesterday, even as EUR/USD held lower-high resistance. GBP/JPY, however, has been in full breakout mode. I looked into this at the Tuesday webinar and the move has stretched all the way into a major Fibonacci level just below the 220 handle.
While USD bulls came back to life from mid-April through last month, GBP/USD has held up relatively well. The pair did test a fresh low in late-June but support held at a key Fibonacci level of 1.3143, and that’s where the music stopped for sellers and since then a strong bullish reversal has taken over that’s seen Cable rip for more than 400 pips into yesterday’s fresh monthly high.
This Fibonacci level carries some historical importance, as well, as the 38.2% retracement of the 2025 rally, and this came into play in August of that year to hold the lows with another instance of support, albeit messier, a couple months later.
GBP/USD Weekly Chart Chart prepared by James Stanley; data derived from Tradingview GBP/USD On a shorter-term basis prices are pulling back from the fresh high set yesterday, and the question now is when or where a higher-low might appear. The 1.3500 handle certainly seems to be playing a role but perhaps more interesting is a spot of prior resistance, down around 1.3450 that would be an ideal spot for buyers to defend. And then below that, the 1.3390 Fibonacci level up to the 1.3400 handle. And for an ‘s3’ support, there’s a prior swing-low turned swing-high that stands out around 1.3325.
GBP/USD Four-Hour Chart Chart prepared by James Stanley; data derived from Tradingview GBP/JPY I looked into GBP/JPY in the Tuesday webinar and at the time, the pair was set up in an ascending triangle formation. Buyers have since made a mark with a rally of more than 200 pips, and now we have price pushing into a longer-term Fibonacci level of note at 219.39 following the print of a fresh 18-year high.
GBP/JPY Monthly Chart Chart prepared by James Stanley; data derived from Tradingview Similar to albeit with more relative strength, we have the move pulling back in a short-term counter-trend dynamic. Given the veracity of the breakout, however, we’re also further away from any nearby possible swing points, as prior resistance is all the way down around 217.84 and for that to come into play we’d need a retracement of more than 100 pips from current market price. Ideally, for bullish continuation, buyers would remain more aggressive than that, and something like this is where Fibonacci can come into play as the recent rally has so far only given back 23.6% of the move.
The 38.2% retracement of that same move sets up as support potential, and this would be a more attractive area for bulls to show hints of topside continuation. From that same retracement, 218.41 and 218.04 would also be of interest.
GBP/JPY Two-Hour Price Chart Chart prepared by James Stanley; data derived from Tradingview --- written by James Stanley, Senior Market Analyst, Global Macro
GBP/JPY trades with a mild negative bias on Thursday, taking a breather after climbing to its highest level since December 2007 the previous day, as the British Pound benefited from easing political uncertainty and expectations of greater fiscal discipline.
At the time of writing, the cross trades around 219.00, down 0.25% on the day.
The Pound strengthened across the board on Wednesday following reports that current Home Secretary Shabana Mahmood could replace Rachel Reeves as Chancellor. Mahmood is seen as a more market-friendly choice than the other candidates.
Meanwhile, renewed tensions in the Middle East are pushing Oil prices higher again, raising inflation risks and reviving expectations of interest rate hikes from the Bank of England (BoE), providing additional support to Sterling.
However, BoE Deputy Governor Sarah Breeden said on Thursday that the Iran war shock is less likely to become embedded and lead to “inflationary dynamics that we might need to lean against.” She added that the BoE is "in a good place" to monitor what’s happening.
Even if the BoE holds rates steady, the interest-rate differential with Japan is still wide, posing a persistent headwind for the Japanese Yen (JPY).
Against this backdrop, GBP/JPY retains an upside bias. However, broad-based Yen weakness, with USD/JPY hovering near 40-year highs, keeps traders alert to possible intervention by Japanese authorities.
Japan’s Finance Minister Satsuki Katayama reiterated on Thursday that authorities are ready to take appropriate action in the currency market at any time if needed. She added that interest and exchange rates are driven by multiple factors but declined to comment on specific currency levels.
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 Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD0.06%0.26%0.03%-0.14%-0.02%-0.01%0.24%EUR-0.06%0.20%-0.02%-0.19%-0.01%-0.06%0.17%GBP-0.26%-0.20%-0.20%-0.38%-0.22%-0.25%-0.00%JPY-0.03%0.02%0.20%-0.19%0.02%-0.05%0.21%CAD0.14%0.19%0.38%0.19%0.20%0.14%0.38%AUD0.02%0.00%0.22%-0.02%-0.20%-0.03%0.19%NZD0.01%0.06%0.25%0.05%-0.14%0.03%0.23%CHF-0.24%-0.17%0.00%-0.21%-0.38%-0.19%-0.23% 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).
The GBP/JPY pair rose today, building on early-week gains despite Middle East tensions that typically favor the safe-haven yen Spiking oil prices have hurt Japan's import-dependent economy, widening its trade deficit and neutralizing the yen's traditional safe-haven status A widening interest rate gap between the BoE and BoJ fuels carry trades, keeping the pair's path toward 220.00 technically intact The British pound has strengthened against the Japanese yen for the third consecutive trading day. This move is notable as elevated geopolitical risks in the Middle East typically lead to increased demand for the yen as a safe-haven asset. Examining the factors influencing this trend offers insight into current market dynamics.
How the Pound is Countering the Yen’s Safe-Haven Flows Recent military actions in the Persian Gulf and threats concerning the Strait of Hormuz have significantly impacted oil markets. While higher energy costs affect Japan, the primary driver for the GBP/JPY pair is the substantial interest rate difference between the Bank of England (BoE) and the Bank of Japan (BoJ). This differential is crucial for JPY-funded carry trades.
The BoE has maintained a relatively hawkish monetary policy, with its base rate at 3.75%. Monetary Policy Committee members voted 7-2 to keep the rates unchanged in the June meeting, with two committee members actually pushing for a hike to 4%. The reasoning is telling because the BoE explicitly flagged that the war in the Middle East has driven up energy prices.
The BoE is therefore seen as hawkish compared to the Bank of Japan’s cautious approach to normalization. This gap in interest rates continues to favor the pound in carry trade strategies, encouraging investors to hold or increase their GBP positions.
Although energy prices have seen some decline from their peak, the persistent risk of inflation keeps the committee in a stance that supports holding rates steady, rather than cutting them as some market participants had anticipated earlier in the year.
Economic indicators from the UK, including stable growth and inflation trends, have bolstered confidence in the pound. Conversely, the yen faces headwinds from Japan’s domestic economic policies and global interest rate differentials.
Is 220.00 Inevitable This Year? With strong underlying forces, reaching the significant psychological mark of 220.00 for GBP/JPY seems very possible, though not guaranteed. Many predictions suggest GBP/JPY will trade between 205 and 218 until 2026. This could go higher if the Bank of England keeps its policy advantage and investors are comfortable taking risks.
Investors must remain alert to two key risks. The biggest immediate risk is the Japanese Ministry of Finance directly interfering in the currency markets. If the yen drops too fast, officials in Tokyo will probably sell dollars and buy yen, which could cause a quick drop of several hundred pips in GBP/JPY.
Another risk is if an oil crisis leads to a global economic slowdown. This would cause a rapid unwinding of carry trades, meaning capital would rush back to Japan, quickly weakening the pound.
Why is GBP/JPY rising despite Middle East tensions?
The same conflict is keeping UK inflation expectations elevated. This pushes the Bank of England towards a policy that supports sterling’s attractiveness due to its yield.
Why isn’t the yen acting as a safe haven right now?
Structural concerns about Japan’s finances appear to be outweighing the yen’s traditional defensive role during this geopolitical stress period.
Should investors view current GBP/JPY gains as sustainable?
The sustainability of current GBP/JPY gains depends on continued monitoring of geopolitical developments and economic data to ensure momentum persists.
The GBP/JPY cross scales higher for the second straight day and climbs to a fresh weekly top, around the 217.70 region, during the first half of the European session on Wednesday. Moreover, spot prices remain within striking distance of the highest level since January 2008 and seem poised to appreciate further amid a supportive fundamental backdrop.
Despite looming intervention risks, the Japanese Yen (JPY) continues with its relative underperformance on the back of the wide gap in borrowing costs between Japan and other major economies, including the UK. The Bank of Japan (BoJ) raised the short-term policy rate in June to 1% or, the highest level since 1995, while the Bank of England's (BoE) base rate sits at 3.75%. This leaves an approximate gap of 275 basis points (bps), which keeps the so-called JPY carry trade active and continues to act as a tailwind for the GBP/JPY cross.
Meanwhile, Japan's economy is highly vulnerable to energy supply disruptions in the Strait of Hormuz as it relies on the Middle East for over 90% of crude oil imports. The closure of the critical waterway, along with a further escalation of tensions between the US and Iran, turns out to be another factor undermining the JPY. The British Pound (GBP), on the other hand, benefits from fading UK political uncertainty, hawkish BoE signals, and modest US Dollar (USD) weakness. This validates the positive outlook for the GBP/JPY cross and favors bulls.
Speaking before the Treasury Select Committee, BoE Governor Andrew Bailey warned on Tuesday of the potential effects of the resumption of the US-Iran conflict and that the event has demonstrated that inflation has not eased enough. Traders were quick to fully price in at least one 25 bps rate increase by year-end, and a possible first hike as early as September. This, in turn, suggests that the path of least resistance for the GBP/JPY cross is to the upside, and any corrective pullback is more likely to be seen as an opportunity for bullish traders.
Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
The British Pound registers gains against the Japanese Yen on Tuesday, rising by over 0.12% to 217.04, with the cross-pair poised to test the year-to-date (YTD) high of 218.01.
GBP/JPY Price Forecast: Technical outlookThe trend is up, as depicted by price action, as GBP/JPY surpassed the April 30 daily high of 216.60, opening the door to consolidation within the 217.00-218.00 range. Although the technicals suggest that further upside is seen, speculation that Japanese authorities might intervene in the FX markets keeps buyers cautious from opening fresh long bets, which could drive the pair higher.
Momentum as measured by the Relative Strength Index (RSI) shows that buyers are in charge, meaning that further upside is expected.
If GBP/JPY clears 218.00, this paves the way to challenge the 218.50 mark, ahead of 219.00. Once those levels are taken out, the next resistance is 220.00, followed by the January 2008 monthly high of 222.76.
On the other hand, the first support for GBP/JPY is at 217.00. Below this area, the next area of demand would be the April 30 high of the day (HOD) at 216.60. Once cleared, the next stop would be the 216.00 mark, followed by the 215.00 psychological level.
GBP/JPY Price Chart — Daily
GBP/JPY daily chart Pound Sterling Price This week The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Japanese Yen.
USDEURGBPJPYCADAUDNZDCHFUSD-0.17%-0.00%0.34%-0.65%-0.35%-0.79%0.13%EUR0.17%0.17%0.44%-0.48%-0.22%-0.62%0.33%GBP0.00%-0.17%0.24%-0.66%-0.39%-0.80%0.20%JPY-0.34%-0.44%-0.24%-1.00%-0.59%-1.08%-0.14%CAD0.65%0.48%0.66%1.00%0.38%-0.10%0.86%AUD0.35%0.22%0.39%0.59%-0.38%-0.41%0.45%NZD0.79%0.62%0.80%1.08%0.10%0.41%1.00%CHF-0.13%-0.33%-0.20%0.14%-0.86%-0.45%-1.00% 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).
GBP/JPY trades in a narrow range on Tuesday as market sentiment remains fragile amid escalating tensions between the US and Iran, which are driving Oil prices higher once again. At the time of writing, the cross trades around 217.10 as the Japanese Yen (JPY) remains broadly weak.
Higher Oil prices are weighing on the Yen as Japan relies heavily on imported energy. At the same time, the inflationary impact of rising energy costs is reinforcing expectations that major central banks, including the Bank of England (BoE), may need to raise interest rates.
The BoJ remains on a tightening path but continues to lag behind its global peers, with wide interest rate gaps giving the British Pound (GBP) an advantage over the Yen and keeping GBP/JPY tilted to the upside.
Still, traders remain cautious about chasing GBP/JPY higher amid the growing risk of intervention by Japanese authorities as USD/JPY hovers near 40-year highs above 160.
Technical analysis: 4-hour chart
On the four-hour chart, GBP/JPY is retesting immediate resistance at the Bollinger Bands’ middle band near 217.09 while holding comfortably above the lower band at 216.41.
Momentum is moderating from recent overbought extremes, with the Relative Strength Index (RSI) near 54, while the Moving Average Convergence Divergence (MACD) indicator stays slightly negative, hinting at a slower but still constructive upside phase rather than a strongly impulsive rally.
On the upside, a clear break above the Bollinger Bands’ middle band would expose the upper band at 217.77. On the downside, initial support lies at the lower band at 216.41. A deeper pullback could expose the horizontal support levels at 215.50, 214.50, 213.50 and 212.50.
Technical analysis: Daily chart
On the daily chart, GBP/JPY maintains a bullish structure, forming a series of higher highs and higher lows. The cross trades above the Bollinger Bands’ middle band at 215.19 and holds above the nearby horizontal support at 216.50, keeping the broader upside bias intact.
The Relative Strength Index (RSI) stands at 61, reflecting firm positive momentum without entering overbought territory, while the Moving Average Convergence Divergence (MACD) remains positive, suggesting that buyers retain control.
On the upside, immediate resistance is seen at the upper Bollinger Band near 218.43, where gains could face some resistance. On the downside, initial support lies at 216.50, followed by the middle Bollinger Band at 215.19. A break below these levels could expose the lower Bollinger Band at 211.94, ahead of the horizontal support at 210.
(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 US Dollar.
USDEURGBPJPYCADAUDNZDCHFUSD-0.21%-0.28%-0.16%-0.34%-0.36%-0.88%-0.40%EUR0.21%-0.07%0.06%-0.13%-0.15%-0.66%-0.18%GBP0.28%0.07%0.13%-0.05%-0.06%-0.59%-0.12%JPY0.16%-0.06%-0.13%-0.18%-0.22%-0.74%-0.27%CAD0.34%0.13%0.05%0.18%-0.04%-0.54%-0.07%AUD0.36%0.15%0.06%0.22%0.04%-0.52%-0.04%NZD0.88%0.66%0.59%0.74%0.54%0.52%0.48%CHF0.40%0.18%0.12%0.27%0.07%0.04%-0.48% 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).
Key Points:Rising producer prices, import costs and bond yields keep another BOJ rate hike in focus.USDJPY remains bullish above 160.30, with a break above 163.70 opening the door toward 175.GBPJPY may target 220, while EURJPY could extend toward 190.50 if key support levels hold.
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The interest rate outlook for Japan remains uncertain as inflationary pressure continues to build. The producer prices are rising, import costs remain high and government bond yields have moved to multi-decade highs. These trends support the case for another Bank of Japan (BOJ) rate hike later this year. But the BOJ may still wait for stronger wage growth and increase in consumer inflation. This leaves the yen sensitive to policy signals, while USDJPY, GBPJPY and EURJPY remain technically strong.
BOJ Rate Hike Outlook Strengthens as Japan Inflation Rises Japan’s producer price index (PPI) increased by 7.1% YoY in June. This beat the market expectation of 6.8% and exceeded the upwardly revised 6.6% gain in May. The increase indicates that businesses are passing their increased input costs to customers faster than in the past. The trend could increase the consumer inflation and lead the BOJ to tighten again.
According to the data, the fuel prices increased by 22.8% while non-ferrous metal prices jumped by 39.2%. Energy prices were pushed up by the Middle East conflict while the AI material demand has lifted the metal prices. These pressures may remain high if tensions continue and supply conditions remain tight. This suggests that the BOJ may hike the interest rate in October.
A low yen is putting on a new layer of inflation. The import prices continued to rise as weak yen and higher energy costs raised the cost of imported goods. The chart below shows that Japan’s imports increased 12.5% to JPY 9,890.2 billion in May 2026. Now the BOJ must decide whether the higher import prices will spread into wages and consumer prices or remain at the wholesale level.
Japan Bond Yields Hit Multi-Decade Highs on Inflation Fears Japanese government bond yields are also pointing toward a higher interest rate environment. The 10-year JGB bond yield rose to a 2.90%, the highest rate since September 1996. It rose during nine consecutive sessions since 26 June, in response to rising oil prices, higher inflation and concerns about Japan’s fiscal health.
The strong drop in yields on Friday does not change the bullish trend. Rising yields suggest that the bond investors want greater compensation for the long term inflation risks.
The long term bond yields have increased with bigger momentum. The 20-year yield rose to 3.89%, while the 30-year yield reached 4.03%. The 40-year yield advanced to 4.055%. These moves indicate that investors are worried about the big government spending plans and that the policy may stay too loose and inflation will continue to rise.
But the shorter end of the yield curve is sending a more cautious signal. The 2-year yield reached to 1.445% and the 5-year yield reached to 1.99%. The yield gap between the 10-year and 2-year yields has increased significantly as seen in the chart below.
The steepening reflects a greater sense of inflation risk in the long end, and less confidence that the BOJ will hike soon. This suggests that BOJ may wait for stronger consumer prices and wages to increase its policy rate from 1% to 1.25%.
USDJPY Forecast: BOJ Rate Hike Risk Challenges Dollar Strength US–Japan Yield Gap Narrows as Japanese Yields Rise The interest rate outlook creates mixed environment for USDJPY. The yen should find support with higher Japanese yields and the prospect of another BOJ rate hike. A more hawkish BOJ could reduce the yield gap between Japan and the U.S. This would detract from any yen funded carry trades and may potentially lead to a lower USDJPY.
The chart below shows that the Japanese yields have increased much faster since 2022. But the U.S. yields have remained relatively high. As a result, the yield gap between the two countries has narrowed. This trend reduces the interest rate advantage of holding dollars over the yen. This may provide support for the Japanese currency. But the U.S. yields remain higher so the dollar still retains an important yield advantage.
But the low yen value still plays a crucial role in Japan’s inflation issues. As energy import prices go up, the demand for foreign currencies and the pressure on the yen increase. This might keep USDJPY high until the BOJ gives more clear indication of what it will do next. Any delay of the next rate hike would be positive for USDJPY while guidance of an October increase could trigger an import yen recovery.
USDJPY Break Above 163.70 Opens the Door to 175 From technical perspective, USDJPY is consolidating at the pivotal area of 160 to 162. The price is compressing within this region before an upside breakout. A break above this zone would likely open the door for strong surge in USDJPY toward the 175 target. This target is defined by the ascending channel pattern that extends from the 2023 lows.
The consolidation around this important region is also visible on the short term 4-hour chart. It shows that the pair is now consolidating between 160.30 and 163.70. The range is widening and prices are compressing within an ascending broadening wedge pattern. A break above 163.70 would indicate a stronger rally in USDJPY toward 166. But 160.30 remains strong support in the short term. Any correction is considered a buying opportunity for traders to push the pair higher.
GBPJPY Forecast: 218 Breakout Opens the Door to 220 Higher Japan rate expectations may also put pressure on GBPJPY. The very large interest rate differential between the United Kingdom and Japan has been good for the pound. But this advantage may weaken if the BOJ hikes the rates again to 1.25%. The higher Japanese bond yields could encourage investors to reduce carry trades and move capital back to yen.
But the pair may still be supported if Bank of England maintains higher rates or takes a conservative approach to rate cuts. Thus, GBPJPY will be reliant on both central banks’ relative directionality. The most bearish risk would be a hawkish BOJ and a softer Bank of England outlook.
GBPJPY also shows strong positive price action. This positive price action is reflected in the formation of inverted head and shoulders pattern from January 2026 to April 2026.
This bullish consolidation pattern broke higher in April 2026. After the breakout, the pair continued to rally on the strength of the pound and the weakness of the Japanese yen. The pair has already broken 216.30 and is now dropping back toward support to attract buyers. The 215.60 to 216.30 area remains strong support. A break above the 218 level would likely push the pair to further highs.
EURJPY Forecast: Bullish Trend Targets 190.50 Eurozone rate expectations are not that aggressive. Therefore, EURJPY could be more responsive to BOJ communication. If the European Central Bank pivots towards easier policy ahead of the BOJ’s next rate increase, the interest rate spread between Europe and Japan will narrow. This would provide support for the yen and increase the risk of a drop in EURJPY.
The outlook also depends on the global risk sentiments. The escalation in the conflict in the Middle East would drive up energy costs for Japan and Europe. But imported fuel needs could exert pressure on the yen in the near term for Japan. The EURJPY could hold steady ahead of the BOJ. But a clear sign that the bank will hike rates in October or at year’s end could generate a deeper pullback.
EURJPY also remains strong and is consolidating within rising trend lines. The immediate support remains at 183.50. The pair is also supported by the 200-day SMA at 182.80. If EURJPY continues higher, the immediate target remains 190.50. As long as the 180 level holds in EURJPY, the next move in the pair will likely be higher. The 50-day and 200-day SMAs are rising which indicates that any correction may attract new buyers.
Final Words The interest rate outlook in Japan remains tilted towards further tightening. The producer prices are high, import costs are increasing and bond yields are rising. These factors suggest another BOJ rate hike. But the central bank might still wait for the clear signals from wages and consumer inflation. A rate hike from 1% to 1.25% could be on the cards later this year if energy prices remain elevated and the yen remains weak.
If BOJ hints at a rate hike in October or at the end of the year, the yen could get some support. But the technical picture of USDJPY, GBPJPY and EURJPY remains bullish. A break above 163.70 in USDJPY would open the door for a rally to 175. GBPJPY might push higher towards 220 and EURJPY could head to 190.50.
Read more: Weak Jobs Data Hits Fed Hike Odds as Dollar Tests Support
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Muhammad Umair is a finance MBA and engineering PhD. As a seasoned financial analyst specializing in currencies and precious metals, he combines his multidisciplinary academic background to deliver a data-driven, contrarian perspective. As founder of Gold Predictors, he leads a team providing advanced market analytics, quantitative research, and refined precious metals trading strategies.
GBP/JPY trades under pressure on Friday after comments from Japan's Finance Minister Satsuki Katayama boosted the Japanese Yen (JPY). At the time of writing, the cross is trading around 217.10, down 0.30% on the day.
Katayama said the government would encourage domestic pension funds, including the Government Pension Investment Fund (GPIF), to increase their holdings of Japanese financial assets.
However, the remarks did little to reverse the Yen's broad-based weakness, leaving GBP/JPY pinned near levels last seen in 2008 and on track for a third consecutive weekly gain.
Meanwhile, the British Pound (GBP) remains the strongest-performing G10 currency in recent weeks, supported by Bank of England (BoE) interest rate hike bets and easing political uncertainty in the United Kingdom.
From a technical perspective, GBP/JPY maintains a bullish bias on the daily chart, holding above the 50-day, 100-day and 200-day Simple Moving Averages (SMAs), reinforcing the broader uptrend.
The cross also remains above the horizontal support at 216.50, while the Relative Strength Index (RSI) stands at 62.54, remaining in bullish territory. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator stays in positive territory at 0.33, suggesting upside momentum remains constructive.
On the upside, immediate resistance is located at the 218.00 horizontal barrier. A sustained break above this level could pave the way for an extension of the broader uptrend.
Initial support is seen at 216.50, followed by the 50-day SMA at 214.31 and the 100-day SMA at 213.51. The 200-day SMA at 210.57 provides the next major support if a deeper corrective pullback unfolds.
US Dollar Price Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD0.03%-0.07%-0.36%-0.15%-0.09%-0.20%0.05%EUR-0.03%-0.11%-0.39%-0.18%-0.13%-0.26%0.02%GBP0.07%0.11%-0.28%-0.07%-0.03%-0.15%0.11%JPY0.36%0.39%0.28%0.21%0.27%0.11%0.39%CAD0.15%0.18%0.07%-0.21%0.05%-0.09%0.18%AUD0.09%0.13%0.03%-0.27%-0.05%-0.13%0.11%NZD0.20%0.26%0.15%-0.11%0.09%0.13%0.26%CHF-0.05%-0.02%-0.11%-0.39%-0.18%-0.11%-0.26% 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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The British Pound advances some 0.50% against the Japanese Yen on Thursday, as risk appetite improves after US President Donald Trump said that Iran had reached out and that it wants to make a deal badly. At the time of writing, GBP/JPY trades at 217.76, near year-to-date (YTD) highs.
GBP/JPY Price Forecast: Technical outlookThe GBP/JPY has reached 18-year highs, last seen in February 2008, opening the door to challenging the January 2008 monthly peak levels.
Price action shows the market is respecting a series of higher highs and higher lows, an indication of further upside. Momentum favours buyers, as the Relative Strength Index (RSI) is bullish and about to enter overbought territory, indicating further upside.
The first resistance for GBP/JPY is 218.00. Once cleared, it opens the door to challenge key psychological levels like 219.00, 220.00 and the January 2008 high at 222.76.
Conversely, a potential intervention by Japanese authorities in the foreign exchange markets could open the door for a deeper pullback, with the first support level seen at the July 7 daily low of 216.38. Below this area, the next support is the 216.00 mark. On further weakness, the next area of interest would be a downslope resistance trendline that turns into support around the 214.70-215.00 area.
GBP/JPY Price Chart — Daily
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 Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD0.06%-0.46%0.65%-0.17%-0.08%-0.82%0.44%EUR-0.06%-0.54%0.58%-0.24%-0.10%-0.91%0.34%GBP0.46%0.54%1.02%0.29%0.42%-0.36%0.88%JPY-0.65%-0.58%-1.02%-0.84%-0.61%-1.45%-0.24%CAD0.17%0.24%-0.29%0.84%0.21%-0.61%0.58%AUD0.08%0.10%-0.42%0.61%-0.21%-0.81%0.43%NZD0.82%0.91%0.36%1.45%0.61%0.81%1.25%CHF-0.44%-0.34%-0.88%0.24%-0.58%-0.43%-1.25% 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).
The British Pound (GBP) is pulling lower against the Japanese Yen (JPY) on Thursday, after hitting a fresh all-time high at 218.01 earlier on the day. The pair has returned to the mid-range of the 217.00s at the time of writing, yet with the bullish trend in place, holding comfortably above the previous highs, in the 217.20 area.
Risks of an intervention by the Japanese authorities remain high, but the wide divergence between the Bank of Japan’s (BoJ) interest rates and those of the major central banks poses a heavy weight on the JPY. More so with Oil prices bouncing up and pressuring global central banks to tighten their borrowing costs.
Technical Analysis: RSI divergence hints at a potential correction
GBP/JPY trades at 217.60, with Elliott Wave analysis suggesting that the pair might be on the fifth and last wave of a bullish cycle. The Pound has pulled back from the 127.2% Fibonacci extension of the fourth wave, at 218.00, and the bearish divergence in the four-hour Relative Strength Index suggests that some consolidation or a corrective reversal might follow from here.
Bears, however, should break the July 7 lows, at 216.35, to confirm that the bullish cycle has completed. In that case, the early July trading floor, near 214.65, would emerge as the next target.
The broader bias, on the other hand, remains positive, and bulls might attempt a further rally, heading for the 261.8% Fibonacci extension of the mentioned rally, at 218.90. Furter appreciation seems off the cards right now.
(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 Canadian Dollar.
USDEURGBPJPYCADAUDNZDCHFUSD-0.08%-0.00%-0.08%0.05%-0.05%-0.59%-0.12%EUR0.08%0.08%0.00%0.12%0.05%-0.49%-0.03%GBP0.00%-0.08%-0.09%0.05%-0.03%-0.56%-0.11%JPY0.08%0.00%0.09%0.11%0.06%-0.51%-0.04%CAD-0.05%-0.12%-0.05%-0.11%-0.07%-0.61%-0.15%AUD0.05%-0.05%0.03%-0.06%0.07%-0.53%-0.08%NZD0.59%0.49%0.56%0.51%0.61%0.53%0.46%CHF0.12%0.03%0.11%0.04%0.15%0.08%-0.46% 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).
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.
USDEURGBPJPYCADAUDNZDCHFUSD0.00%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%CAD0.24%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%NZD0.49%0.49%0.54%0.68%0.25%0.56%0.39%CHF0.07%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).
The GBP/JPY reverses course on Tuesday, loses 0.24% as the Japanese Yen recovered some ground against most G8 FX currencies, except for the US Dollar. At the time of writing, the cross-pair trades at 216.51 after reaching a multi-year high of 217.22.
GBP/JPY Price Forecast: Technical outlookThe bullish bias remains intact as the GBP/JPY printed a year-to-date (YTD) high at 217.22, which could open the door for further upside. However, it was a false breakout, as the cross pair tumbled below the previous YTD peak at 216.46, opening the door for a test of 216.00. Fears of a possible Bank of Japan (BoJ) intervention in the foreign exchange markets could prompt traders to book profits.
For a bullish continuation, buyers must clear the 217.00 figure, followed by the high of the day (HOD) fof 217.22 ‒ also the high of the year, which clears the way to challenge 218.00. On further strength, the next area of interest would be the 220.00 milestone.
On further weakness, the GBP/JPY first support would be the July 6 low at 215.33, followed by 215.00. Below this level, the next support would be the 50-day Simple Moving Average (SMA) at 214.11, followed by the 100-day SMA at 213.26.
GBP/JPY Price Chart ‒ Daily
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 Swiss Franc.
USDEURGBPJPYCADAUDNZDCHFUSD0.29%-0.07%0.52%0.01%0.15%0.61%0.61%EUR-0.29%-0.37%0.24%-0.30%-0.09%0.26%0.29%GBP0.07%0.37%0.50%0.08%0.30%0.64%0.68%JPY-0.52%-0.24%-0.50%-0.54%-0.25%0.09%0.10%CAD-0.01%0.30%-0.08%0.54%0.28%0.65%0.59%AUD-0.15%0.09%-0.30%0.25%-0.28%0.34%0.39%NZD-0.61%-0.26%-0.64%-0.09%-0.65%-0.34%0.03%CHF-0.61%-0.29%-0.68%-0.10%-0.59%-0.39%-0.03% 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).
