GBP/JPY Price Forecast: Bears test 200-day SMA after sharp sell-off
GBP/JPY rises on Tuesday as the Japanese Yen (JPY) gives back part of its recent rally, which was driven by coordinated intervention from Tokyo and Washington.
GBP/JPY dipped lower on Tuesday as traders sold the pair after a steep sell-off, which was triggered by the Japanese Yen (JPY) recovering some of its recent losses. Analysts at MUFG/BTMU suggest that the coordinated intervention by both Tokyo and Washington only offers a temporary reprieve for the Yen, arguing that US intervention will likely continue to support the currency even if Japan's efforts help stabilize it in the short term.
The technical picture for GBP/JPY has shifted to bearish territory, with the pair trading under both the 100-day and 200-day SMAs, indicating a continued downtrend. The Relative Strength Index (RSI) suggests the pair is overbought, while the Moving Average Convergence Divergence (MACD) remains negative, further highlighting the selling pressure.
Key support levels are located near the 200-day SMA at 211.75, with deeper levels at 207 and 205, and resistance at the 100-day SMA at 214.45 and the 216.50 horizontal barrier.
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