GBP/JPY Price Forecast: Rebounds above 207.00 as oversold risk eases
The GBP/JPY edges higher by about 0.29% on Tuesday, even as risk appetite has shifted to the sour side due to geopolitical developments that are driving global bond yields higher amid inflation fears. At the time of writing, the cross-pair trades at 209.02 after bouncing off daily lows of 208.25.
GBP/JPY experienced a 0.29% increase on Tuesday, trading at 209.02, after reaching a low of 208.25 earlier in the day. The pair has been trending downwards since intervention in the FX markets, causing losses of over 1,300 pips since its peak near 220.00. The Relative Strength Index (RSI) is bearish, but it has shifted to a slightly positive position after crossing below 30 and reaching nearly 34.
In the short term, GBP/JPY may rise and challenge key resistance levels, potentially testing 210.00 if it crosses the August 3 daily low of 209.58. To change the trend, the pair must surpass the 200-day Simple Moving Average (SMA) at 213.22, moving towards the 215.00 mark. Japanese Yen was the strongest against the New Zealand Dollar today, while USD/JPY continues to climb toward 155.00, awaiting FOMC and BoJ meetings.
The Fed rate-hike bets and oil-driven inflation risks solidify the US Dollar, driving up global bond yields near multi-year highs and supporting the US Dollar.
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