GBP/JPY BACK ABOUT A MAXIMUM ONE YEAR WHILE YEN RECOVERED LAND

  • The GBP/JPY is softened from about a year maximum, going back after reaching 199.83 – the highest level since July 2024.
  • The technical panorama remains bullish, with the GBP/JPY staying above the 21 -day EMA in 197.15.
  • The RSI remains about 60, indicating a sustained bullish impulse, while the MACD maintains a positive crossing.

The sterling pound (GBP) is softened slightly in front of the Japanese yen (JPY) on Wednesday, going back after reaching 199.83 – its highest level since the end of July 2024. The slight setback seems to be driven by the gain and a technical correction, while the Japanese Yen recovers some strength in general after having been pressed at the beginning of this week by renewed tariff threats of tariff USA and weak salary data.

The GBP/JPY is descending during American negotiation hours. At the time of writing, the crossing is quoted around 198.90, lowering 0.17% in the day, while the bulls take a respite after the strong rally of the torque towards a maximum of a year.

On the commercial front, Japan is sailing under a growing pressure of the aggressive tariff campaign of Washington. The president of the USA, Trump, has announced 25% tariffs on all Japanese imports, which will come into force on August 1. In contrast, the United Kingdom has emerged as one of the few early movements to ensure an agreement with the US, having completed an economic prosperity agreement that reduces tariffs on key exports such as steel, aluminum and cars. The agreement has helped cushion sterling pound against broader commercial volatility, while Japanese yen under pressure while Tokyo hastened to negotiate similar exemptions before the deadline of August.

From a technical perspective, the GBP/JPY pair remains in a well -defined ascending channel, with prices currently going back after testing the upper limit, just below the psychological level of 200.00. The slight descent seems to be part of a technical correction after the prolonged torque streak.

The widest bullish trend remains intact, since the torque continues to quote above the 21 -day exponential (EMA) mobile average in 197.16, which is closely aligned with the lower limit of the ascending channel and has consistently served as dynamic support since the beginning of May. A decisive breakdown below this level could open the door to a deeper correction towards the minimum of June 19 about 194.00, with a higher downward risk if that level is not maintained. Until then, the general bullish structure remains in place.

Momentum indicators offer a positive to positive trend. The relative force index (RSI) remains around 60, suggesting that the bullish impulse is still present but is not yet in overcompra territory. Meanwhile, the MACD indicator shows a positive crossing, with the MacD (blue) line staying just above the signal line (orange), reflecting a continuous bullish impulse. However, the reduction of the gap between the lines suggests a slowdown of the short -term rise impulse. The operators must be attentive to a daily closure above 200.00 for a possible confirmation of rupture, while a closure below 197.00 could open the door to a deeper setback towards the 194.50–195.00 support.

And in Japanese price today

The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency against the Canadian dollar.

USD EUR GBP JPY CAD Aud NZD CHF
USD 0.09% -0.04% -0.22% 0.20% -0.17% -0.01% -0.25%
EUR -0.09% -0.11% -0.31% 0.12% -0.22% -0.10% -0.22%
GBP 0.04% 0.11% -0.14% 0.23% -0.19% -0.05% -0.20%
JPY 0.22% 0.31% 0.14% 0.38% 0.04% 0.19% -0.02%
CAD -0.20% -0.12% -0.23% -0.38% -0.31% -0.21% -0.33%
Aud 0.17% 0.22% 0.19% -0.04% 0.31% 0.12% 0.00%
NZD 0.01% 0.10% 0.05% -0.19% 0.21% -0.12% -0.15%
CHF 0.25% 0.22% 0.20% 0.02% 0.33% -0.01% 0.15%

The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).

Source: Fx Street

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