On Thursday, the British pound (GBP) experienced a decline against the Japanese yen (JPY) after reaching a peak of 218.01 earlier in the day. At the moment, the exchange rate sits around 217.00, though the upward trend seems to be continuing, remaining above the previous high near 217.20.
There’s still a strong possibility of intervention by Japanese authorities, but the significant gap between Bank of Japan (BOJ) interest rates and those of other major central banks is putting downward pressure on the yen. This situation is particularly intensified by rising oil prices, adding to the pressure on central banks worldwide to increase borrowing costs.
Technical analysis: RSI divergence points to potential correction
Currently, GBP/JPY is trading at 217.60, and according to Elliott Wave analysis, it could be in the fifth and final wave of a bullish pattern. The pound has pulled back from the 127.2% Fibonacci extension of wave 4 at 218.00, and the bearish divergence observed in the 4-hour relative strength index hints that some consolidation or corrective movement might be on the horizon.
However, to confirm the end of this bullish cycle, sellers need to push below the low from July 7, which was 216.35. If that happens, the trading floor around 214.65 from early July could become the next target.
On a broader scale, the overall sentiment is still positive, and bulls may try to push further toward 218.90, marking the 261.8% Fibonacci extension of the noted upward trend. It’s honestly tough to envision higher numbers at this juncture.
Today’s Japanese yen price
The following table illustrates the percentage shifts of the Japanese yen (JPY) against other major currencies today. Notably, the yen performed strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.00% | -0.08% | 0.05% | -0.05% | -0.59% | -0.12% | |
| EUR | 0.08% | 0.08% | 0.00% | 0.12% | 0.05% | -0.49% | -0.03% | |
| GBP | 0.00% | -0.08% | -0.09% | 0.05% | -0.03% | -0.56% | -0.11% | |
| JPY | 0.08% | 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% | |
| australian dollar | 0.05% | -0.05% | 0.03% | -0.06% | 0.07% | -0.53% | -0.08% | |
| new zealand dollar | 0.59% | 0.49% | 0.56% | 0.51% | 0.61% | 0.53% | 0.46% | |
| swiss franc | 0.12% | 0.03% | 0.11% | 0.04% | 0.15% | 0.08% | -0.46% |
This heat map displays the percentage change among major currencies, with the selected base currency from the left column and the quote currency from the top row. So, for instance, if you choose Japanese Yen from the left and look at the horizontal line under USD, the percentage change shown represents the relationship between JPY and USD.
