GBP/JPY Price Forecast: Holds above 218.00 bulls eye YTD peak

The GBP/JPY consolidates around 218.20 as the Pound Sterling loses momentum amid the new PM, Andy Burnham, taking office. Fears of a possible intervention by Japanese authorities capped the cross-pair advance, which remains trading near year-to-date (YTD) highs seen on July 15.

GBP/JPY Price Forecast: Technical outlook

The ongoing pullback during the last four trading days stalled near the 217.50 area, at around the low of the day (LOD) of 217.53. Since then, GBP/JPY has bounced and reclaimed the 218.00 level, increasing buyers’ chances of testing higher prices.

The Relative Strength Index (RSI) shows that momentum is bullish, though it has turned flat, suggesting the cross could trade sideways.

For a bullish continuation, GBP/JPY needs to surpass the 218.50 psychological level before 219.00. Once breached, the next stop would be the YTD high of 219.61, ahead of 220.00.

On the downside, a decisive break below the July 21 low of 217.53 opens the path to challenge 217.00. Below lies the April 30 high-turned-support at 216.60, followed by the 50-day Simple Moving Average (SMA) at 215.00.

GBP/JPY Price Chart – Daily