Key Moments
- GBP/JPY has been trading in a consolidation band between 210.00 and the 211.50 area, with the latest quote around 210.76.
- Hawkish minutes from the Bank of Japan and rising geopolitical tensions in the East China Sea have been underpinning demand for the Yen.
- Technical indicators on the 4-hour chart signal waning bullish momentum, with MACD slightly below zero and RSI hovering near 50.
Range-Bound Trading as Yen Gains Fundamental Support
Sterling’s advance against the Japanese Yen has stalled just below the 211.50 area, leaving GBP/JPY oscillating within a relatively narrow band. Downside probes have so far been contained above 210.00, reflecting a market that is searching for direction rather than extending the prior rally.
The latest minutes from the Bank of Japan have reinforced expectations of additional monetary tightening, lending support to the Yen. At the same time, tensions in the East China Sea have weighed on risk sentiment, further increasing interest in the safe-haven Japanese currency.
The Chinese Navy has extended military exercises for a second consecutive day, including live-fire missile drills and rehearsals for a full blockade of Taiwan. These developments have prompted Taipei to strengthen its defenses. The escalation has pressured Asian equity markets and is contributing to the Yen’s support on Tuesday as investors gravitate toward perceived safe-haven assets.
Technical Setup: Bullish Bias Intact but Momentum Fades
On the 4-hour chart, GBP/JPY is trading at 210.76, showing marginal losses on the day. While the broader uptrend remains in place, several technical signals point to a loss of upside momentum.
The Moving Average Convergence Divergence (MACD) line sits slightly below the zero line, indicating a softening in bullish pressure. Meanwhile, the Relative Strength Index (RSI) is fluctuating around the neutral 50 mark, underscoring the lack of a strong directional bias at this stage.
Key Technical Levels: Support and Resistance
Immediate support is located at 210.05, the low recorded on December 24. Below that, a trendline drawn from the early November lows is positioned at 209.35. A confirmed break beneath these levels would shift attention toward the mid-December highs near 208.90.
On the topside, the long-term high at 211.53 is currently capping bullish attempts. If buyers manage to push through that barrier, attention would likely turn to the 127.2% Fibonacci extension of the December 15 to December 22 advance at 212.75, followed by the 161.8% extension of the same move at 214.38, which are described as plausible upside targets.
(The technical analysis of this story was written with the help of an AI tool)
Japanese Yen Performance Against Major Currencies
The table below shows the percentage change of the Japanese Yen (JPY) against major currencies today. According to this snapshot, the Yen has been strongest versus the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.07% | -0.12% | -0.08% | -0.23% | -0.16% | -0.01% | |
| EUR | -0.01% | -0.08% | -0.13% | -0.10% | -0.26% | -0.16% | -0.04% | |
| GBP | 0.07% | 0.08% | -0.04% | -0.02% | -0.17% | -0.07% | 0.04% | |
| JPY | 0.12% | 0.13% | 0.04% | 0.03% | -0.11% | -0.05% | 0.14% | |
| CAD | 0.08% | 0.10% | 0.02% | -0.03% | -0.14% | -0.07% | 0.06% | |
| AUD | 0.23% | 0.26% | 0.17% | 0.11% | 0.14% | 0.08% | 0.21% | |
| NZD | 0.16% | 0.16% | 0.07% | 0.05% | 0.07% | -0.08% | 0.13% | |
| CHF | 0.01% | 0.04% | -0.04% | -0.14% | -0.06% | -0.21% | -0.13% |
The heat map is read by selecting the base currency from the left-hand column and the quote currency from the top row. For instance, choosing the Japanese Yen in the left column and moving across to the US Dollar shows the percentage change for JPY (base)/USD (quote) in the corresponding cell.
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