GBP/JPY Price Forecast: Steadies above 215.00 capped by 50-day SMA
The GBP/JPY remains directionless on Thursday as traders turn cautious about opening fresh directional bets amid intervention fears in the FX markets, which could strengthen the Yen, and after solid UK data. The cross-pair sits at around 215.00, down 0.02%.
On Thursday, GBP/JPY remained directionless, with traders hesitant to place fresh directional bets due to concerns about potential Japanese Yen strengthening as a result of market intervention. The cross traded around 215.00, marking a 0.02% decrease. The pair encountered strong resistance near the 50-day Simple Moving Average (SMA) of 215.44, resulting in a sideways trading pattern.
The Relative Strength Index (RSI) settled near its 50-neutral level, suggesting more consolidation ahead. For a bullish resurgence, the first resistance levels are the 50-day SMA at 215.44, followed by the 216.00 milestone. A clear break above these levels would open the way to 216.50 and eventually the psychological barrier of 217.00.
On the downside, GBP/JPY finds support at 215.00, with the 100-day SMA of 214.57 to watch next. Below this region, the 200-day SMA at 212.12 sits just above the August 7 low of 211.47.
Additionally, Japanese Yen proved the strongest against the Swiss Franc this week, as illustrated in the heat map displaying percentage changes of major currencies against each other. Markets analyst, news editor, and trading instructor with 14 years of experience in FX, commodities, US equity indices, and global macro markets provided this insight.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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