GBPJPY Analysis GBPJPY suffered heavy losses for the second day in a row as investors struggled to cope with the impact of President Trump’s recently announced tariffs on Japan and the UK. The imposition of a 24% tariff on Japanese goods and a 10% tariff on UK imports has raised concerns about potential disruptions to global trade and has signaled a halt to investment in financial markets. From a technical perspective, indicators strongly support the current downtrend. The Stochastic Oscillator has fallen into oversold territory and remains below the trigger line, suggesting continued downward pressure. Similarly, the Relative Strength Index (RSI) is falling into oversold territory, further increasing the pessimistic mood. Meanwhile, the MACD indicator is trading below the signal line and is weakening. Given this situation, GBPJPY will continue its rise until there is a major change in sentiment. If the selling pressure continues, the pair will test the 61.8% Fibonacci retracement level of the August-November rally at 187.61. This is a key technical level that could provide temporary relief. However, if this level fails to hold, the next downside target is the 78.6% Fibonacci retracement at 184.29. A sustained decline below this level could signal a deeper decline and a drop to the psychologically important level of 180.00. This level not only acts as a psychological barrier, but also represents a key support zone as it has acted as a key price point in previous market cycles. A break below 180.00 would likely lead to further selling pressure and expose GBPJPY to major losses in future trading. On the other hand, if the pound finds support and enters a recovery phase, the first resistance level to watch will be the 50-day simple moving average (SMA) at 191.41. A successful breakout of this level will be seen as an attempt to recoup recent losses. This could lead to the emergence of a key resistance area between 192.61 and 193.51, which includes the 20-day, 100-day and 200-day simple moving averages. The convergence of multiple moving averages in this zone is a key obstacle to a bullish reversal. However, if buyers manage to break out of this crowded zone, the next upside target will be 195.15. This corresponds to the 23.6% Fibonacci retracement level. Above this level, a general recovery is expected, and the short-term bearish outlook may change. In general, the GBP/JPY pair is on a weak trend; The downtrend is firmly in place due to President Trump’s destructive tariff policies. Growing uncertainty over global trade and economic growth has led to more hedging and a significant correction in currency pairs. Strong support can be found at 180.00, but the path ahead is uncertain and further weakness is possible if the downward pressure persists. Market participants will be closely monitoring price action in the coming trading days to gauge whether these corrections will deepen or whether there will be a significant recovery from the sharp decline.
