Analysis of GBP/JPY | Pound Yen Forecast | Forex

The GBP/JPY (British Pound - Japanese Yen) currency pair represents how many Japanese Yen are required to purchase one British Pound. As per the Bank for International Settlements (2016), the British Pound ranks as the fourth most traded currency globally, while the Japanese Yen holds the third position. Traders can utilize the GBP/JPY chart to monitor live exchange rates and enhance their technical analysis when trading this currency pair.

Currently, GBP/JPY is in a phase of consolidation below the 191.99 level, with intraday bias remaining neutral. If the price breaks above 191.99, it could target the 61.8% Fibonacci retracement level of the move from 208.09 to 180.00, setting the next resistance at 197.35. This move would signify the continuation of the corrective phase from the high of 208.09.

Conversely, a decisive break below the 187.84 support level would suggest that the rebound from the 180.00 level has concluded, shifting the bias back to the downside. This would increase the likelihood of a retest of the 180.00 support.

From a broader perspective, the price actions following the 208.09 peak are seen as part of a larger corrective pattern, stemming from the rally that began at 123.94, the low reached in 2020. The current price development indicates that the first leg of this correction has likely completed. As a result, the medium-term consolidation range is expected to be defined between the 38.2% Fibonacci retracement level of 123.94 to 208.09 at 175.94, and the previous high at 208.09.

Summary:

GBP/JPY remains in a consolidation phase below the key resistance level of 191.99. A break above this level could push the pair towards 197.35, while a break below 187.84 would signal a potential retest of the 180.00 support. In the broader context, the pair's movements are seen as part of a corrective pattern within a medium-term consolidation range between 175.94 and 208.09.