The GBP/JPY pair experienced significant volatility, reaching a peak of 208.11 before dropping to 203.82 and ultimately settling at 204.99. This downward momentum was supported by levels at 203.25 (Kijun-Sen) and 200.16 (50-DMA), while resistance was noted at 205.00 and 205.64 (Tenkan-Sen), with a potential breach signaling a recovery.
The session saw the Pound-Yen pair move 425 pips amidst speculation of Japanese authorities’ intervention following the US inflation report announcement. Despite the initial high, the pair stabilized around 204.99, marking a loss of over 1.20%.
On the technical side, the daily chart shows an upward bias for GBP/JPY, even though it fell below the Tenkan-Sen level at 205.64. The Relative Strength Index (RSI) remains bullish but with a downward slope, indicating a possible bearish trend.
In a bearish scenario, sellers need to push the pair below the Senkou Span A at 204.45 to test the Kijun-Sen at 203.25 and the 50-day moving average at 200.16. On the other hand, if GBP/JPY surpasses 205.00, it could target the Tenkan-Sen at 205.64 and potentially reach 206.00.
Overall, the Pound Sterling (GBP) is the oldest currency in the world, with key trading pairs like GBP/USD and GBP/JPY. The value of GBP is influenced by factors such as monetary policy, economic indicators, and trade balance data, which can impact its strength in the foreign exchange market.