GBP/JPY price forecast: rising and reaching 18-year highs above 217.00

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The British Pound rises to an 18-year high against the Japanese Yen, posting a solid gain of over 0.77% as GBP/JPY clears a year-to-date high of 216.60 and the cross pair hits 217.00 for the first time since January 2008. At the time of writing, the GBP/JPY rate is 217.11.

GBP/JPY Price Forecast: Technical Outlook

GBP/JPY formed a bullish harami pattern, also known as an “inside day” in the West, on Friday, which opened the door to further gains as the pair broke the July 2 high of the day (HOD) at 216.08, sharpening the rally above the milestone of 217.00.

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The relative strength index (RSI) remains bullish as the index heads higher, closing in the overbought area at 70. This could pave the way for some consolidation before the uptrend continues.

The path of least resistance for the GBP/JPY pair is upwards. The first resistance is the 217.50 area. Above this level, the next stop will be 218.00, followed by the psychological level of 220.00.

Conversely, for a bearish reversal to occur, GBP/JPY must fall below the psychological level of 215.00, followed by the July 3 low of the day (LOD) at 214.72. In case of further weakness, the next area of ​​concern will be the 50-day uncomplicated moving average (SMA) at 214.09, followed by the 100-day SMA at 213.17.

GBP/JPY chart – daily

GBP/JPY daily chart

Japanese yen price this week

The table below shows the percentage change in the Japanese Yen (JPY) against the major currencies traded this week. The Japanese yen was strongest against the Canadian dollar.

USD EUR GBP JPY BOOR AUD NZD CHF
USD -0.02% -0.02% -0.02% 0.02% 0.01% -0.00% 0.01%
EUR 0.02% -0.01% 0.00% 0.05% -0.01% -0.01% 0.00%
GBP 0.02% 0.00% 0.02% 0.07% 0.01% 0.02% 0.02%
JPY 0.02% 0.00% -0.02% 0.03% -0.04% -0.03% -0.04%
BOOR -0.02% -0.05% -0.07% -0.03% -0.00% -0.06% -0.04%
AUD -0.01% 0.00% -0.01% 0.04% 0.00% 0.00% -0.02%
NZD 0.00% 0.01% -0.02% 0.03% 0.06% -0.01% -0.00%
CHF -0.01% -0.01% -0.02% 0.04% 0.04% 0.02% 0.00%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

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