empty
20.09.2024 04:57 PM
GBP/JPY: Analysis and Forecast

This image is no longer relevant

The GBP/JPY pair has been climbing for five consecutive days, nearing a three-week high as it attempts to recover the 191.00 level. This upward movement is influenced by selling pressure on the Japanese yen, triggered by less hawkish remarks from Bank of Japan Governor Kazuo Ueda during a press conference. Additionally, Japan's interest rates remained unchanged, contrary to expectations. Ueda noted that while prices in the country remain high, the risks of inflation exceeding targets have diminished. This undermines the yen's safe-haven appeal amid bullish global market sentiment.

Meanwhile, the British pound is benefiting from the Bank of England's decision to keep rates unchanged and reduce its holdings of government bonds by another £100 billion over the next 12 months. This decision provides additional momentum to the GBP/JPY pair, supporting its upward trend.

From a technical perspective, the Relative Strength Index (RSI) on the daily chart is gaining positive momentum, reinforcing the outlook for further growth. However, the 50-day Simple Moving Average (SMA) has declined below the 200-day SMA, signaling caution for the bulls. As a result, any further upward movement may encounter strong resistance around the 50-day SMA, currently near the 191.75 level. Beyond that is the psychological level of 192.00, and surpassing this level could push the GBP/JPY pair higher, though it may face resistance at the 200-day SMA around the 192.35 level.

On the other hand, the 190.40–190.35 zone offers immediate support before the key psychological level of 190.00 and horizontal support at 189.45. Further selling pressure could drag the GBP/JPY pair lower toward the 189.00 level, with the potential to reach the swing low of 188.65. Failure to defend these support levels could pave the way for deeper losses, with spot prices potentially accelerating toward the round number of 188.00 and beyond.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Jerome Powell Is Not Ready to Intervene

Investors were deeply disappointed when Federal Reserve Chair Jerome Powell made it clear during his Friday speech at the end of last week that he does not intend to intervene

Jakub Novak 11:11 2025-04-07 UTC+2

Markets Descend Further into Chaos (Expect Renewed Declines in #SPX and #NDX)

The global market crash continues. The trade war declared by Donald Trump on much of the world is in full swing. Investors have stopped reacting to economic data, even though

Pati Gani 10:08 2025-04-07 UTC+2

The Market Left Empty-Handed

The market appeared to have bottomed out; however, someone knocked from below. A two-day selloff triggered by Donald Trump's sweeping tariffs turned out to be the fourth-worst in the history

Marek Petkovich 09:44 2025-04-07 UTC+2

What to Pay Attention to on April 7? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday. After last week's developments, we believe these events will have no impact on the movements of either currency pair. Nonetheless, today's

Paolo Greco 07:03 2025-04-07 UTC+2

EUR/USD Weekly Preview: U.S. Inflation Reports and the Fate of the "Big Tariffs"

The upcoming week promises to be just as volatile as the previous one. The so-called "big tariffs," which are set to take effect on April 9, are at the center

Irina Manzenko 06:13 2025-04-07 UTC+2

GBP/USD Pair Overview – April 7. The British Pound Delivered a Major Surprise on Friday

The GBP/USD currency pair rose 280 pips between Wednesday and Thursday, only to crash by 340 on Friday. These kinds of "flights" have become a regular occurrence lately. While

Paolo Greco 03:23 2025-04-07 UTC+2

EUR/USD Pair Overview – April 7. Nonfarms and Powell Saved the Dollar

The EUR/USD currency pair lost over 300 pips on Wednesday and Thursday, but Friday brought a strong recovery. No one would have been surprised if the dollar had continued falling

Paolo Greco 03:23 2025-04-07 UTC+2

XAU/USD. Analysis and Forecast

Gold is attracting some sellers for the second day in a row, despite the absence of any clear fundamental catalyst for a decline. Most likely, this is due to trading

Irina Yanina 11:50 2025-04-04 UTC+2

Old market rules broken

Someone is not telling the truth. Donald Trump insists that everything is going well and that the markets will flourish. But the S&P 500 just posted its worst 10-week start

Marek Petkovich 11:10 2025-04-04 UTC+2

The Growth of the Gold Price Has Stopped. What Is the Reason? (There Is a Possibility of a Local Corrective Pullback in #SPX and Bitcoin)

The global market crash triggered by the announcement of sweeping tariffs personally introduced by the U.S. President continues into Asian trading sessions. While the decline has slowed, there is still

Pati Gani 09:09 2025-04-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.