Key Moments
- GBP/JPY trades around 212.35, declining for a second straight session while still hovering near multi-year highs.
- UK GDP rose 0.3% MoM in November, topping the 0.1% consensus and rebounding from October’s 0.1% contraction, but offered only limited support to Sterling.
- Technical structure for GBP/JPY remains bullish, with price above the 21-day and 50-day SMAs, although RSI and MACD point to moderating upside momentum.
GBP/JPY Pulls Back as Yen Finds Support
The British Pound (GBP) is under pressure against the Japanese Yen (JPY) on Thursday as renewed speculation about possible intervention provides support for the Yen following its earlier weakness. At the time of writing, GBP/JPY is trading close to 212.35, marking a second consecutive day of losses while still holding near multi-year highs.
The pair’s retreat comes even as recent UK data surprised to the upside. The latest release showed that UK Gross Domestic Product (GDP) increased 0.3% month-on-month in November, beating expectations of a 0.1% gain and reversing October’s 0.1% decline. Despite this stronger-than-forecast reading, the impact on Sterling has been relatively muted in the face of firmer demand for JPY.
Trend Remains Up, But Momentum Indicators Cool
From a technical perspective, GBP/JPY continues to trade within a clear upward trend. The daily chart still shows a sequence of higher highs and higher lows, underscoring a broadly bullish technical picture even as the latest price action reflects some loss of momentum after recent strength.
The 21-day Simple Moving Average (SMA) remains positioned above the 50-day SMA, maintaining a constructive bias and signaling that the medium-term uptrend is intact. Price action is currently holding above both moving averages, reinforcing the positive tone. The 21-day SMA, located around 211.30, serves as nearby dynamic support, followed by the 50-day SMA near 208.20 as a deeper support area.
On the upside, a decisive move through the 214.00 psychological barrier would indicate that buyers have reasserted control, paving the way toward the 215.00 level, with room for an additional advance toward the 216.00 area if bullish pressure resumes.
RSI and MACD Point to Waning Bullish Momentum
Momentum indicators reflect a cooling in the previously strong up move. The Moving Average Convergence Divergence (MACD) histogram is fluctuating slightly below the zero line, while the MACD line is just under the Signal line, both pointing to moderating bullish momentum rather than an outright bearish shift.
The Relative Strength Index (RSI) is currently around 62, having retreated from overbought territory but still residing in positive territory. This suggests that although the upside impulse has eased, the broader bullish bias has not yet been negated.
Pound Performance Against Major Currencies
The following table presents the percentage change of the British Pound (GBP) against major currencies today. According to these moves, the British Pound has been strongest versus the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | 0.31% | 0.40% | 0.08% | 0.17% | 0.05% | 0.27% | 0.25% |
| EUR | -0.31% | — | 0.09% | -0.22% | -0.14% | -0.26% | -0.04% | -0.06% |
| GBP | -0.40% | -0.09% | — | -0.32% | -0.23% | -0.35% | -0.13% | -0.15% |
| JPY | -0.08% | 0.22% | 0.32% | — | 0.07% | -0.04% | 0.15% | 0.15% |
| CAD | -0.17% | 0.14% | 0.23% | -0.07% | — | -0.11% | 0.09% | 0.08% |
| AUD | -0.05% | 0.26% | 0.35% | 0.04% | 0.11% | — | 0.22% | 0.19% |
| NZD | -0.27% | 0.04% | 0.13% | -0.15% | -0.09% | -0.22% | — | -0.02% |
| CHF | -0.25% | 0.06% | 0.15% | -0.15% | -0.08% | -0.19% | 0.02% | — |
The heat map indicates percentage moves of major currencies against one another. The base currency is selected from the left-hand column, and the quote currency from the top row. For instance, choosing the British Pound in the left column and moving across to the US Dollar cell shows the percentage move in GBP (base)/USD (quote).
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