Key Moments
- GBP/JPY rebounded to the 213.80 area after touching weekly lows near 213.33, but it remained on track for a fourth straight daily decline.
- Rising Oil prices linked to escalating US-Iran hostilities weighed on the Japanese Yen, given the pressure higher energy costs pose for Japan’s import-reliant economy.
- Technical signals pointed to a corrective pullback in GBP/JPY, with the RSI drifting toward the mid-40s and the MACD line below zero while key support and resistance levels clustered around 212.65-214.70.
GBP/JPY Stabilizes After Intraday Slide
The British Pound (GBP) traded defensively against the Japanese Yen (JPY) on Thursday, even as the cross pared most of its earlier losses. GBP/JPY recovered to the 213.80 region at the time of writing, after falling to weekly lows at 213.33 during the Asian session. Despite the intraday bounce, the pair was still set to move lower for a fourth consecutive day, extending a corrective phase that followed last week’s strong advance.
Geopolitical developments and commodity market moves continued to shape sentiment around the Yen. The intensifying conflict between the United States and Iran, together with a rise in Oil prices, exerted additional downward pressure on Japan’s currency.
Geopolitical Tensions and Oil Rally Pressure the Yen
Reports of renewed US strikes on military facilities in Iran’s Bandar Abbas province deepened concerns over the durability of an already fragile ceasefire. These developments also dimmed expectations for an imminent reopening of the Strait of Hormuz, a critical route for global energy flows.
In the Oil market, Brent crude climbed to $94.30, up from levels near $92.00 on Wednesday. West Texas Intermediate (WTI) hovered close to $90 per barrel, after trading below $87 the previous day. Such price increases represent a meaningful challenge for Japan’s Oil-importing economy and tend to act as a drag on any attempt by the Yen to stage a sustained rally.
Technical Picture: Corrective Phase After Overbought Stretch
From a technical perspective, GBP/JPY was undergoing a downside correction after reaching overbought territory earlier in the week. Momentum indicators reflected this cooling phase: the Relative Strength Index (RSI) slipped toward the mid-40s, while the Moving Average Convergence Divergence (MACD) line moved below the zero line, indicating that bullish momentum was fading in the near term.
On the downside, selling pressure was so far being contained above the 213.30 band, which coincides with the May 21 lows. Below that, the 61.8% Fibonacci retracement of last week’s advance, located at 212.65, is a typical retracement target and aligns with the lows recorded on May 19 and May 20.
On the upside, the prior support zone just above 214.00 – corresponding to Wednesday’s low – now represents an important test of buyers’ resolve. A sustained move back above this area would likely bolster confidence among bulls and open the path toward retesting the monthly highs in the 214.50 to 214.70 range.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen Performance Against Major Currencies
The table below summarizes the Japanese Yen’s percentage changes against major currencies today. According to the data, the Japanese Yen showed the greatest strength versus the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.12% | -0.02% | 0.05% | 0.23% | 0.15% | 0.05% | |
| EUR | -0.08% | 0.04% | -0.13% | -0.03% | 0.16% | 0.10% | -0.03% | |
| GBP | -0.12% | -0.04% | -0.17% | -0.08% | 0.11% | 0.05% | -0.09% | |
| JPY | 0.02% | 0.13% | 0.17% | 0.06% | 0.25% | 0.16% | 0.07% | |
| CAD | -0.05% | 0.03% | 0.08% | -0.06% | 0.19% | 0.11% | -0.00% | |
| AUD | -0.23% | -0.16% | -0.11% | -0.25% | -0.19% | -0.06% | -0.19% | |
| NZD | -0.15% | -0.10% | -0.05% | -0.16% | -0.11% | 0.06% | -0.12% | |
| CHF | -0.05% | 0.03% | 0.09% | -0.07% | 0.00% | 0.19% | 0.12% |
The heat map represents percentage moves of major currencies relative to one another. The currency listed on the left side of the table serves as the base currency, while the currency shown at the top of the table is the quote currency. For instance, selecting the Japanese Yen from the left column and moving horizontally to the US Dollar cell provides the percentage change for JPY (base)/USD (quote).
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