FX.co ★ GBP/JPY

GBP/JPY moves higher on Wednesday as the Japanese Yen (JPY) falls against other currencies, likely due to profit-taking after the currency's strong performance since the start of the month. Meanwhile, oversold conditions on the RSI suggest room for a short-term reversal in the pair. In the latest reading, the pair was trading at 208.55 after hitting a low of 207.10, its lowest in December 2025. GBP/JPY has fallen about 4% from above 216 after a sharp sell-off, moving below the 50-day SMA, 100-day SMA, and 200-day SMA, along with the psychological support level of 210. This breakdown has made the overall bullish technical setup vulnerable, with 210 now acting as resistance. In all three, the major moving averages sit above the current level and form a broad resistance zone between 213 and 215.50. Nevertheless, the moving averages maintain their longer-term bullish configuration, with the 50-day SMA above the 100-day and 200-day averages. This indicates that despite the recent decrease, the trend is damaged, but a bearish moving average configuration has not yet formed. RSI at 27 indicates the cross is oversold, so a correction or consolidation is possible. Nevertheless, the MACD remains below zero, indicating negative momentum in the market. At the topside, the first level of resistance will be at the 23.6% Fibonacci retracement of the drop from 216.63 to 207.10 at 209.35. This is followed by the 210 psychological level, which is also the 38.2% Fibonacci retracement point at 210.74. Further upside may target 50. Above this level is the 200-day SMA at 213, which will act as important resistance. An increase in buying pressure will result in the appearance of another important resistance zone in the mid-214.00s due to the intersection of the 78.6% Fibonacci retracement level and the 100-day SMA. Negatively, early support is found at around 207. A clear breach of support to the downside will mean that the fall will proceed, possibly picking up speed as selling gathers steam. Conversely, holding above 207 will trigger a short-covering rally, with 210 as the upside target.