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GBP/JPY trades near 200-day SMA after sharp yen selloff
Analysts at MUFG/BTMU say coordinated US and Tokyo intervention is likely only a temporary aid, and that a fundamentals shift is needed for a sustainable yen reversal.
GBP/JPY rebounded on Tuesday as the yen gave back part of its recent rally, which followed coordinated FX intervention involving Tokyo and Washington, according to FXStreet.
MUFG and BTMU analysts said the latest joint intervention may offer only partial and temporary relief, arguing that while it could steady the currency in the near term, it mainly buys time, not a durable reversal.
They added that a change in underlying fundamentals is ultimately needed to reverse the yen weakening trend that has persisted for about five years.
The near term technical picture has turned bearish for GBP/JPY after a recent selloff, with the cross falling decisively below the 100-day simple moving average and now testing the 200-day SMA near 211.75.
FXStreet also cited an RSI near 30 that signals oversold conditions, while MACD remains deeply negative, keeping downside pressure in focus, with resistance flagged around the 100-day SMA at 214.45 and support first around 211.75.