GBP/JPY Price Forecast: Bulls recover lost ground as intervention effect wears off
GBP/JPY extends its steady recovery on Tuesday and has now recouped almost all the losses triggered by the joint US-Japan intervention in late July. The intervention was aimed at curbing excessive weakness in the Japanese Yen (JPY) after USD/JPY climbed above 160 to a forty-year high.
The GBP/JPY pair has seen a steady recovery since late July, recovering almost all of the losses caused by the joint US-Japan intervention. The pair is currently trading around 217.10, up 0.12% on the day. However, the impact of the intervention proved short-lived due to Japan's expansionary fiscal policy, high government debt, and wide interest-rate gap with other major economies.
Technical analysis suggests a bullish bias for GBP/JPY, with the price holding above the Bollinger Bands' 20-period simple moving average around 216.84 and approaching the upper band near 217.47. The pair's RSI at 61 indicates strong but not extreme upside momentum, while the ADX near 29 suggests a strengthening trend. Immediate resistance lies at the Bollinger upper band near 217.47, with support at the mid-Bollinger SMA around 216.84 and further support at the lower band near 216.21. The overall market sentiment remains positive for GBP/JPY.
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