GBP/JPY Professor: The pound is prepared for weekly profits in the middle of the general weakness of the Yen

  • The GBP/JPY is modestly higher above 199.00 on Friday, rising 0.35% intradic, in the midst of a generalized weakness of the YEN.
  • Tariff threats of 25% of US President Trump about Japanese imports undermine the attraction of Yen as a safe refuge.
  • The crossing is prepared for solid weekly profits, staying close to the maximum of the year with a strong bullish impulse.

The pound sterling (GBP) is modestly stronger in front of the Japanese Yen (JPY) on Friday, since Yen remains under pressure in the middle of a new wave of uncertainty related to trade. Earlier this week, US President Donald Trump announced 25% tariffs on all Japanese imports, which will enter into force as of August 1. The announcement has worried global markets and has decreased the traditional attraction of Yen as a safe refuge. In this context, the GBP/JPY seems to be prepared to ensure weekly profits, backed by the sustained weakness of the YEN and a firm bullish impulse.

At the time of writing, the torque is quoted within a family range around 199.10, with an increase of 0.35% in the day, after briefly touching a maximum intradication of 199.45. The crossing remains well backed above its simple mobile (SMA) average of 20 days, which also acts as the Bollinger middle band, reinforcing its role as dynamic support. With prices keeping close to the maximum of the year to date, the broader technical structure continues to favor the bulls, since the persistent purchase interest keeps the upward trend intact.

From a trend monitoring perspective, the GBP/JPY has established a consistent pattern of higher and higher minimums, respecting the limits of an ascending channel. Provided that the torque is kept above the key support in 197.50, with the simple mobile average (SMA) of 20 days offering a short -term dynamic support, the perspective It is still constructive. A sustained breakdown below this level could pave the way for a movement towards 195.50 near the minimum of July 4.

The immediate resistance is observed in 199.45 (the daily maximum), followed by the Superior Bollinger band in 199.97 and the key psychological barrier in 200.00.

The impulse indicators They continue to support the upward trend in general. The Relative Force Index (RSI) remains around 60.70, comfortably above the neutral brand of 50, but still below the overcompra territory, which suggests that there is room for more profits before the impulse becomes too intense. Meanwhile, Moving avenge Convergence/Divergence (MacD) continues to exhibit a positive bias. The MACD line remains above the signal line, although the histogram is beginning to flatten, which suggests a possible slowdown in the impulse if buyers fail to overcome the next resistance area.

In the short term, the technical image favors a greater rise as long as the torque is maintained above the support zone of 197.50-198.00. However, operators may want to closely monitor the price action near the 200.00 brand, where overcompra signals and benefits could limit profits. The widest direction will probably remain linked to geopolitical developments, especially around commercial relations between the US and Japan and any possible tokyo reprisal.

Source: Fx Street

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