Key Moments
- GBP/JPY traded near 211.81, recovering toward the 212.00 area after earlier losses below 211.00.
- Announcement of a February 8 snap election in Japan coincided with broad Yen weakness.
- Technical setup shows resistance near 212.00, with downside focus on 210.30 and upside levels at 212.80 and 214.30.
GBP/JPY Attempts Rebound as Yen Softens
GBP/JPY moved back toward the 212.00 handle after rebounding from intraday lows just under 211.00. The cross has been supported by a weaker Japanese Yen following news from Japan’s political arena.
Japanese Prime Minister Sanae Takaichi announced a snap election scheduled for February 8, a development that coincided with a sharp sell-off in the Yen across major currency pairs.
Market participants are concerned that Takaichi’s rising approval ratings could translate into greater parliamentary backing, enabling an extension of her stance favoring large-scale stimulus and accommodative monetary policy. With Japan’s public debt already described as ballooning, traders are increasingly wary that such a policy mix could push the country toward a potential fiscal crisis.
Technical Picture: Uptrend Support Broken
At the time of writing, GBP/JPY is trading at 211.81. Price action has slipped below the ascending trendline drawn from the early November lows. That broken trendline now appears to be acting as resistance around the 212.00 region, which is a bearish technical signal for the pair.
Momentum indicators are skewed toward a neutral-to-negative bias. The Moving Average Convergence Divergence (MACD) line is positioned below both its Signal line and the zero level, while the Relative Strength Index (RSI) is hovering near 44, leaving it in neutral territory but below the 50 midpoint.
If buyers fail to drive the pair decisively above the 212.00 zone, selling pressure could intensify toward the late December and early January lows around 210.30, with additional support seen at the December 10 high of 208.90. Conversely, a clear break above 212.00 would open the way for a move back to the January 15 high at 212.80, followed by the long-term high near 214.30.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen Performance Against Major Currencies
The table below displays the percentage change of the Japanese Yen (JPY) versus a selection of major currencies today. Japanese Yen was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | -0.26% | -0.23% | -0.08% | -0.20% | -0.30% | -0.56% | -0.60% |
| EUR | 0.26% | — | 0.03% | 0.18% | 0.06% | -0.04% | -0.30% | -0.34% |
| GBP | 0.23% | -0.03% | — | 0.17% | 0.03% | -0.08% | -0.33% | -0.38% |
| JPY | 0.08% | -0.18% | -0.17% | — | -0.15% | -0.24% | -0.50% | -0.55% |
| CAD | 0.20% | -0.06% | -0.03% | 0.15% | — | -0.09% | -0.35% | -0.42% |
| AUD | 0.30% | 0.04% | 0.08% | 0.24% | 0.09% | — | -0.27% | -0.30% |
| NZD | 0.56% | 0.30% | 0.33% | 0.50% | 0.35% | 0.27% | — | -0.05% |
| CHF | 0.60% | 0.34% | 0.38% | 0.55% | 0.42% | 0.30% | 0.05% | — |
The heat map above shows how major currencies have moved against each other. The base currency is selected from the left-hand column, while the quote currency is taken from the top row. For instance, choosing Japanese Yen in the left column and moving horizontally to the US Dollar cell gives the percentage change for JPY (base)/USD (quote).
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