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GBP/JPY eyes 217.00 after rally lifts pair to 216.90

GBP/JPY is trading near 216.73 after reaching a 14-day high of 216.90, and a break above 217.00 could target the July 10 and July 15 peaks at 218.69 and 219.61.

Reported · Written up by our desk · Major Pairs

GBP/JPY advanced more than 0.7% and refreshed a 14-day high of 216.90, with buyers positioning for a potential breakout above 217.00, FXStreet said. After bouncing off a daily low of 215.04, the pair was last seen around 216.73. FXStreet described the technical setup as constructive, noting GBP/JPY cleared the previous week’s high of 216.22 and that momentum has edged higher, with the Relative Strength Index remaining flat over the last two sessions.

FXStreet flagged 217.00 as the first resistance level, with a breach exposing the July 10 high of 218.69, followed by the July 15 high at 219.61. On the downside, the report said a slide below 216.00 could draw price back toward the 50-day Simple Moving Average at 215.60, then the 100-day SMA at 214.81 and the 200-day SMA at 212.51.

The currency move comes against a backdrop in which Japanese yen strength and weakness can be influenced by Bank of Japan policy, the yield differential versus the US, and broader risk sentiment, FXStreet added. The outlet also noted the BoJ has been gradually unwinding its ultra-loose policy, which can affect the direction of the yen versus peers.

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