GBP/JPY Price Forecast: Pound tests support at 212.0 on intervention threats
GBP/JPY hits weekly lows below 212.00 after rejection at 213.30 on Thursday.
The Yen rallies following bold intervention warnings by Japanese authorities.
The pair is testing the ascending trendline support from early November lows.
The Yen is outperforming most of its peers in an otherwise quiet session on Friday, as Japanese authorities ramped up their threats of intervention. The GBP/JPY is extending its reversal from long-term highs above 214.00 to test levels below the 212.00 line at the time of writing.
comments
The Japanese Finance Minister, Satsuki Katayama, affirmed in a press conference on Friday that she would not “rule out any options” to defend the Japanese currency. Katayama also recalled that the joint statement with the US in September was “extremely significant and included language on intervention,” hinting at a concerted action with US economic authorities.
Technical analysis: Testing the ascending trendline near 212.00
The 4-hour chart shows the GBP/JPY trading right above 212.00, testing the support area in the confluence of the late December highs, and the ascending trendline support from the November lows in the area between 211.60 and 212.00.
The broader trend remains bullish, but technical indicators hint at a fading momentum. The Moving Average Convergence Divergence (MACD) remains below zero, reflecting a moderate bearish pressure. The Relative Strength Index (RSI) sits near 42in neutral-to-bearish territory.
A confirmation below the mentioned 211.60 level would put the bullish trend into question, and increase pressure towards 210.00, where bears were capped on December 24 and 31 and January 8. To the upside, Thursday's high, near 213.30 are closing the path to the long-term highs, at 214 30 hit earlier in the week.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Oil prices and interest rates are rising, but US stocks still trust TACO
Oil prices have surpassed $100, the Federal Reserve is raising interest rates, and tensions in the Strait of Hormuz persist—Wall Street's bet on the "Trump will always back down" TACO trade is facing its most dangerous moment. The unexpected resilience of US stocks has actually reduced Trump's motivation for reconciliation; the real pressure valve lies in bond yields approaching the 4.946% warning line. Behind-the-scenes negotiations are reportedly ongoing, but this time, can the market's patience last until Trump changes course?
Claude leads 26% of R&D, Anthropic raises heated discussion on "AI developing AI" with its "AI slowdown theory"! The RSI training paradigm is catalyzing a major expansion in computing power demand.
Anthropic PBC's Claude chatbot has driven more than a quarter of the company's AI research and development work. The company found that Claude "led" 26% of Anthropic's R&D efforts and collaborated with employees to complete about 90% of the work. Anthropic plans to introduce third-party evaluators within the company and grant them access to internal processes, systems, and data to help track the progress of AI development.
U.S. business growth drops to lowest in a year, stock price plunges 19% year-to-date! McDonald's (MCD.US) urgently changes leadership to rebuild "cost-effectiveness" defense line
Same-store sales growth in the United States fell to 0.8%, reaching a new low in over a year. McDonald's is urgently adjusting its strategy, planning to implement long-term affordable pricing, temporary discounts, and suspension of random inspections to optimize the service experience, making every effort to restore customer traffic and stock price.
Crypto prices
More
