The GBP/JPY pair extended its weekly uptrend for the fourth consecutive day on Thursday, climbing to around 196.30 during the Asian session—approaching the multi-month high recorded earlier this May. However, spot prices pulled back roughly 50 pips from the daily peak and currently trade near 195.80-195.85, up 0.40% on the day.
The recent US court ruling blocking tariffs boosted risk sentiment, weighing on the safe-haven Japanese Yen and fueling demand for GBP/JPY. Still, expectations of continued Bank of Japan (BoJ) interest rate hikes have limited further Yen losses. Additionally, a broadly stronger US Dollar pressured the British Pound, capping gains for the pair.
Technically, GBP/JPY has shown resilience just below its crucial 200-day Simple Moving Average (SMA). The subsequent bounce and positive momentum indicators on the daily chart suggest the pair’s path remains upward. Bulls, however, may seek a decisive break above the monthly swing high near 196.40 before aggressively adding long positions.
A sustained move beyond this level could propel GBP/JPY toward the 197.00 psychological mark for the first time since January, with potential extension toward intermediate resistance at 197.40-197.50 and further toward the 198.00–198.25 zone, the year-to-date peak. Fresh buying momentum here could spark further bullish interest and support continuation of the two-month uptrend.
On the downside, any pullback may find support around the 195.50-195.40 zone, helping limit losses near the key 195.00 level. A break below Thursday’s Asian session low near 194.85 could trigger stop-losses and accelerate declines toward intermediate support at 194.40-194.35, with further downside risk extending to 194.00.
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