GBP/JPY Price Forecast: Seems poised to retest YTD peak, near 200.00 mark
- GBP/JPY regains positive traction on Thursday and seems poised to appreciate further.
- The formation of an ascending channel points to a well-established short-term uptrend.
- A convincing break below the 196.00 mark is needed to pave the way for deeper losses.
The GBP/JPY cross attracts some dip-buyers near the 198.40-198.35 region during the Asian session on Thursday and stalls a modest corrective pullback from a one-year high touched the previous day. Spot prices currently trade around the 199.00 mark and seem poised to appreciate further amid a bullish technical setup.
The recent move higher witnessed over the past two months or so has been along an upward sloping channel, which points to a well-established short-term bullish trend. Moreover, oscillators on hourly/daily charts are holding in positive territory and are still away from being in the overbought zone. This, in turn, validates the near-term positive outlook and suggests that the path of least resistance for the GBP/JPY cross is to the upside.
Hence, a subsequent strength towards retesting the year-to-date peak, just ahead of the 200.00 psychological mark, looks like a distinct possibility. The said handle coincides with the top boundary of the aforementioned trend-channel, which if cleared decisively will be seen as a fresh trigger for the GBP/JPY bulls and set the stage for an extension of the pair's three-month-old uptrend.
On the flip side, the 198.40-198.35 region, or the daily low, now seems to protect the immediate downside ahead of the 198.00 round figure. A convincing break below the latter might prompt some technical selling and expose the next relevant support near the 197.15-197.10 horizontal zone. The GBP/JPY cross could weaken towards the 196.50 intermediate support before eventually dropping to the 196.00 mark, or the lower end of the trend channel.
GBP/JPY daily chart
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).
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