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GBP/JPY rises above 218 as Fed decision weakens the dollar
The pair is near 218.5 after a day low of 217.16, with resistance seen at 219.0 and 219.57 to 219.61.
GBP/JPY climbed more than 0.30% to regain the 218.00 area, trading near 218.50 after printing a low of 217.16, as overall US dollar weakness followed the Federal Reserve’s monetary policy decision, according to FXStreet.
The report said risk appetite improved after the Fed move, helping the cross pair reverse course from a ten-day low, and it pointed to a strengthening Relative Strength Index as support for further upside.
FXStreet highlighted 219.00 as the first resistance level, followed by 219.57 to 219.61, which aligns with peaks from July 15, and then the 220.00 psychological level.
On the downside, the first support is 218.00, with a break below that exposing 217.16, then 216.60 before attention shifts to the 50-day simple moving average at 215.62. The outlet also noted that potential FX intervention by Japanese authorities could change the downside path.