Key Moments
- GBP/JPY recovered to the 213.80 region after touching a weekly low at 213.33, but remained lower for a fourth straight session.
- Heightened US-Iran tensions and rising Oil prices have added pressure on the Yen, linked to concerns over Japan’s oil-importing economy.
- Technical signals point to a corrective downturn, with RSI slipping toward the mid-40s and MACD below zero while key support sits near 213.30 and 212.65.
GBP/JPY Holds Off Lows but Extends Multi-Day Decline
The British Pound – Japanese Yen cross stayed under pressure on Thursday, even as it erased much of its earlier intraday loss. After dipping to a weekly trough at 213.33 during the Asian session, GBP/JPY climbed back toward the 213.80 area at the time of writing. Despite this rebound, the pair remained on track for a fourth consecutive day of losses, consolidating last week’s strong advance into a corrective phase.
Geopolitical Tensions and Oil Rally Weigh on the Yen
Market sentiment has been unsettled by escalating frictions between the US and Iran, which have coincided with a renewed rise in Oil prices and have influenced Yen dynamics. Reports of new US strikes on military locations in Iran’s Bandar Abbas province have intensified doubts about the durability of a fragile ceasefire and have dampened expectations for an imminent reopening of the Strait of Hormuz.
In energy markets, Brent crude advanced to $94.30 after trading around $92.00 on Wednesday, while WTI futures hovered near $90, up from levels below $87 the prior day. These price moves are described as a significant concern for Japan’s oil-dependent economy and are seen as a headwind for further JPY appreciation.
Technical Picture: Corrective Phase After Overbought Conditions
From a technical perspective, GBP/JPY is undergoing a bearish correction following a stretch in overbought territory earlier in the week. Momentum indicators are signaling a loss of bullish strength: the Relative Strength Index (RSI) has retreated toward the mid-40s, and the Moving Average Convergence Divergence (MACD) line has slipped below zero, pointing to fading upside momentum in the near term.
On the downside, selling pressure has so far been contained above the 213.30 zone, which corresponds to the May 21 low. A deeper pullback would bring focus to the 61.8% Fibonacci retracement of last week’s upswing at 212.65, a level frequently watched as a corrective target and aligned with the May 19 and May 20 lows.
On the topside, the former support band just above 214.00, coinciding with Wednesday’s low, is the first hurdle for buyers. A sustained move and confirmation above this area would be seen as reinforcing bullish control and could open the way toward the monthly highs in the 214.50-214.70 range.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen Performance Against Major Currencies
The following table shows the percentage change of the Japanese Yen versus major currencies today. According to this snapshot, the Yen showed its greatest strength against 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 should be read using the currency on the left as the base and the currency along the top as the quote. For instance, selecting the Japanese Yen on the left and moving across to the US Dollar cell provides the percentage change for JPY (base) / USD (quote).
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