Key Moments
- GBP/JPY pulled back from a two-month peak near 216.08 as the Yen strengthened sharply.
- Speculation about potential Japanese authorities’ intervention intensified after the Yen’s rebound, while the Ministry of Finance declined to comment.
- Despite the pullback, GBP/JPY technicals stayed broadly bullish above key moving averages on both 4-hour and daily charts.
Market Overview
GBP/JPY traded lower on Thursday as the Japanese Yen (JPY) advanced broadly, amid renewed speculation that Japanese officials may have stepped into the foreign exchange market. The move followed the Yen’s earlier slide to a 40-year low against the US Dollar (USD) earlier in the week.
At the time of writing, the cross was quoted around 215, slipping from an intraday high of 216.08 reached during the Asian session, which also marked a two-month high.
According to Reuters, it was not immediately clear what triggered the sharp rebound in the Yen, and Japan’s Ministry of Finance declined to comment. Some traders and strategists speculated that authorities had conducted a rate check.
Market participants remained on alert for any signs of official action. Even so, downside pressure on GBP/JPY appeared contained as investors continued to exploit Japan’s comparatively low interest rate environment versus other major economies, supporting carry trade demand. From a broader technical standpoint, the bias for the cross stayed skewed to the upside.
4-Hour Chart: Short-Term Trend Still Favoring the Upside
On the 4-hour timeframe, GBP/JPY preserved a mildly bullish structure. The pair remained above the 100-period simple moving average (SMA) at 214.25 and the 200-period SMA at 214.19. Price also hovered just above horizontal support at 215, signaling interest on dips into that region.
The Relative Strength Index (RSI) stood at 52, reflecting a slightly positive momentum backdrop. The Average Directional Index (ADX) at 31 suggested a moderately established trend rather than conditions associated with a sharp or chaotic reversal.
On the topside, immediate resistance was identified at the horizontal barrier around 216. A decisive break above this level would clear the path for an extension of the broader advance. On the downside, initial support sat at 215, ahead of the clustered moving average band defined by the 100-period SMA at 214.25 and the 200-period SMA at 214.19. Below this zone, a deeper support area emerged near 213.
Daily Chart: Bullish Bias Intact Above Key SMAs
On the daily chart, GBP/JPY retained a constructive near-term tone as it held above both the 100-day and 200-day SMAs, located at 213.02 and 210.03 respectively. The cross traded just beneath horizontal resistance at 216.00.
The RSI in the mid-50s indicated supportive momentum, while the subdued ADX reading around 13 pointed to a trend that was firm but not strongly directional.
On the downside, first-layer support appeared at 214.50, where a horizontal level underpinned the latest move higher. Below that, the 100-day SMA at 213.02 and the 200-day SMA close to 210.03 provided additional layers of support.
On the topside, a break above 216.00 would open the door to further gains, with the current moving average configuration continuing to offer a generally supportive backdrop as long as price remained above 213.02.
Japanese Yen Performance Against Major Currencies
The following table shows the percentage change of the Japanese Yen (JPY) against major currencies today. Japanese Yen was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | -0.23% | -0.28% | -0.68% | -0.00% | 0.05% | -0.02% | -0.35% |
| EUR | 0.23% | — | -0.06% | -0.44% | 0.21% | 0.28% | 0.23% | -0.12% |
| GBP | 0.28% | 0.06% | — | -0.39% | 0.24% | 0.33% | 0.28% | -0.07% |
| JPY | 0.68% | 0.44% | 0.39% | — | 0.66% | 0.74% | 0.64% | 0.33% |
| CAD | 0.00% | -0.21% | -0.24% | -0.66% | — | 0.06% | 0.01% | -0.34% |
| AUD | -0.05% | -0.28% | -0.33% | -0.74% | -0.06% | — | -0.05% | -0.40% |
| NZD | 0.02% | -0.23% | -0.28% | -0.64% | -0.01% | 0.05% | — | -0.35% |
| CHF | 0.35% | 0.12% | 0.07% | -0.33% | 0.34% | 0.40% | 0.35% | — |
The heat map above shows percentage changes of major currencies against each other. The base currency is taken from the left column, while the quote currency is taken from the top row. For example, selecting Japanese Yen from the left column and moving across to the US Dollar cell displays the percentage change for JPY (base)/USD (quote).
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