The Pound Sterling ended Thursday’s session almost flat at around 214.70 as market sentiment fluctuated but ultimately improved after US President Donald Trump cancelled attacks and hinted at a possible deal in place. The GBP/JPY traded with gains of almost 0.04%.
GBP/JPY Price Forecast: Technical outlook
Price action suggests the cross-pair is consolidating as traders refrain from pushing GBP/JPY higher amid fears of a possible Japanese authorities' intervention in USD/JPY. If they decided that the Yen is weaker and intervene, this would generate ripples, as the Japanese currency would appreciate against most G8 currencies.
Hence, the GBP/JPY drifts higher, though steadily, but it remains unable to clear the most recent cycle high reached on June 5 at 215.61. Momentum, as measured by the Relative Strength Index (RSI), favours further upside, though it has shifted slightly, suggesting indecision.
If GBP/JPY surpasses the June 10 high at 215.24, the next stop would be the June 5 high at 215.61, followed by the year-to-date (YTD) high of 216.60.
On the flip side, if GBP/JPY drops below the confluence of the 20- and 50-day Simple Moving Averages (SMAs) at around the 214.23-214.10 area, this opens the door toward 214.00. Below this level sits the June 8 swing low of 212.93, ahead of the 100-day SMA at 212.67.
GBP/JPY Price Chart – Daily
GBP/JPY daily chart
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