GBPJPY Daily Forecast The GBP/JPY pair fell for the second day in a row as traders became concerned about global trade tensions again in response to President Trump’s recent tariff announcements. The recently imposed reciprocal tariffs (24% on Japanese imports and 10% on British exports) have added to market uncertainty and heightened volatility in currency markets. Investors are trying to deal with the potential impact of these tariffs on economic growth, business sentiment, and the broader trading environment. As the market struggled to cope with these conditions, selling pressure on the GBP/JPY pair increased, weakening the currency and accelerating its ongoing downtrend. Technically, bearish indicators remain dominant, indicating the inevitability of further declines. The stochastic oscillator has moved into the oversold zone and is stuck below the trigger line with no signs of recovery anytime soon. These persistent weaknesses indicate continued selling pressure. Meanwhile, the relative strength index (RSI) is declining, increasing negative sentiment as it approaches the oversold point. Furthermore, the moving average convergence divergence (MACD) indicator is below its signal line and continues to decline, indicating that the downward momentum is strengthening. In light of these signals, the technical picture remains favorable for sellers, increasing the likelihood of a decline in the GBP/JPY pair unless a major catalyst emerges. If the decline continues, the GBP/JPY pair could soon reach 187.61, which is the 61.8% Fibonacci retracement level of the August-November rally and an important technical level to determine the pair’s next move. If the selling pressure continues to increase, the next major support area will be the 78.6% Fibonacci retracement level at 184.29, which could act as a temporary floor for the pair. However, if this level fails to hold, the GBP/JPY pair could continue to decline towards the psychologically important 180.00 level. Historically, this circular support pattern has acted as a strong reversal point and is therefore a key test of the current downtrend. A decline below the 180.00 level could indicate a significant change in sentiment, which could lead to more losses. However, if the GBP finds some stability and recovers, key resistance levels will form at each. The first major hurdle is the 50-day simple moving average, currently at 191.41. A convincing break above this level could open the way for further recovery, with the 192.61-193.51 area potentially being key. This area is particularly important as it represents the intersection of the 20-day, 100-day, and 200-day simple moving averages, which could act as a strong resistance area. If the rally manages to lift the GBP/JPY pair above this moving average, the next major hurdle comes at the 23.6% Fibonacci retracement level at 195.15. This level represents a key turning point, and if broken, it would signal that the recent sell-off is merely a correction and not the start of a longer-term decline. Overall, the GBP/JPY pair remains under significant pressure, with technical indicators pointing to the downside. President Trump’s tariff policies have escalated trade tensions and created further uncertainty in the markets, which has hit the British pound hard and increased the yen’s appeal as a safe haven. The 180.00 level is a key support area that will determine whether this decline continues or deepens. On the other hand, a successful recovery requires breaking several resistance levels to allow sentiment to change sharply again. Until clear signs of a trend reversal appear, traders should exercise caution and closely monitor key skill levels to identify potential trading opportunities.
