The pound/yen currency pair took a step back on Tuesday, dropping by 0.24%. This decline came as the Japanese yen managed to recover some strength against most of the G8 currencies, excluding the US dollar. Currently, the pair is trading at 216.51, having previously reached a multi-year high of 217.22.
GBP/JPY Price Forecast: Technical Outlook
There remains a bullish sentiment since GBP/JPY touched a year high of 217.22, which might suggest more upside ahead. However, this surge seems to have been a false breakout, as the pair has fallen below the previous year-to-date peak of 216.46. This situation could set the stage for a test of the 216.00 level. Concerns about potential intervention from the Bank of Japan (BOJ) in the foreign exchange market could lead traders to take profits.
For the bullish trend to continue, buyers will need to surpass the 217.00 mark, and then target the day’s peak of 217.22. This figure also stands as the highest price of the year, paving the way for a move towards 218.00. If the momentum holds, the next significant target could be the 220.00 level.
On the flip side, if the pair continues to decline, the first support level will likely be found at the July 6th low of 215.33, followed by the 215.00 mark. Should it drop further, the next support could be at the 50-day simple moving average (SMA) situated at 214.11, with the 100-day SMA at 213.26 as another potential support point.
GBP/JPY Price Chart – Daily
This week’s Japanese yen price
The table below outlines the percentage change of the Japanese Yen (JPY) relative to major currencies this week, indicating that it performed strongest against the Swiss franc.
| USD | EUR | GBP | JPY | CAD | Australian Dollar | New Zealand Dollar | Swiss Franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | -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% | |
| GBP | 0.07% | 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% | |
| Australian Dollar | -0.15% | 0.09% | -0.30% | 0.25% | -0.28% | 0.34% | 0.39% | |
| New Zealand Dollar | -0.61% | -0.26% | -0.64% | -0.09% | -0.65% | -0.34% | 0.03% | |
| Swiss Franc | -0.61% | -0.29% | -0.68% | -0.10% | -0.59% | -0.39% | -0.03% |
The heat map illustrates the percentage changes between key currencies. The base currency is indicated in the left column, while the quote currency is displayed at the top row. For instance, selecting Japanese Yen from the left and moving to USD will show the percentage change representing JPY (base)/USD (estimate).
