GBP/JPY Price Forecast: Struggles at 209.00 as bearish-engulfing looms

The GBP/JPY pair experienced a volatile session on Thursday, ultimately ending unchanged at 208.87 following a swing from 208.20 to a daily high of 209.40. The currency pair has been exhibiting bearish tendencies, with prices plunging over 4.46% after a coordinated intervention between the US and Japan, which pushed the GBP/JPY to a yearly low of 207.10 on September 8.

Since then, the pair has rebounded slightly but remains within a comfortable range. The Relative Strength Index (RSI) is currently at 43, indicating further consolidation ahead. However, short-term technical analysis suggests that the 50-day Simple Moving Average (SMA) has dipped below the 200-day SMA, reflecting a bearish dominance in the market.

For the prices to continue their downward trajectory, sellers need to surpass the October 8 low of 208.20 before testing the 208.00 mark. Should the prices dip further, the September 30 low of 206.89 would serve as the next support level. Conversely, if buyers manage to push the prices above 209.50, the next target would be 210.00, followed by the 50-day SMA at 211.98.

In the event the prices surpass 210.00, the traders' primary objective would be the September 18 high at 211.28, then the 50-day SMA at 211.98. Japanese Yen emerged as the strongest against the Australian Dollar today, with the heat map displaying percentage changes of major currencies against each other.