GBP/JPY Price Forecast: Intervention shock exposes 210.00
The GBP/JPY tanks amid speculation of intervention by Japanese authorities in the FX markets, driven by a rate check by Tokyo. The cross-pair drops more than 300 pips, trades at 210.92, down by more than 1.40%.
The GBP/JPY currency pair experienced a significant drop amid rumors of intervention from Japanese authorities in the foreign exchange markets. The pair fell more than 300 pips to 210.92, representing a decrease of more than 1.40%. Trading above the 200-day Simple Moving Average (SMA) at 213.04, GBP/JPY had already left behind key psychological levels of 212.00 and 211.00.
The Relative Strength Index (RSI) turned oversold, indicating potential for a mean-reversion move if it rises above the 30 level. Should the pair clear the 212.00 level before encountering the 200-day SMA at 213.06, a bullish recovery may ensue, with the next target being the 100-day SMA at 215.04. Conversely, if GBP/JPY falls below 210.00, the March 31 swing low of 209.64 is expected.
On further decline, the next support area would be the 209.00 milestone. The JPY has shown strength against other major currencies this week, with the Japanese Yen outperforming against the New Zealand Dollar. Markets analysts note that USD/JPY has recovered from multi-month lows, potentially moving toward the 156.00 region before the opening bell in Asia.
The weakening of the US Dollar and lower US Treasury yields have contributed to the rise in gold prices, surpassing the $4,500 mark per troy ounce. Additionally, the US diesel crack spread has surged above $100 per barrel for the first time, indicating a significant shift in the oil market.
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