GBP/JPY Price Forecast: Pound-Yen pares gains, eyes trendline support with Fed rate call in focus

Source Fxstreet
  • GBP/JPY falls nearly 0.70% to trade around 195.30, erasing Monday’s advance.
  • Strong US Dollar and steady Japanese Yen pressure British Pound sentiment.
  • Pair holds above ascending trendline and 21-day EMA near 194.80 for now

The British Pound (GBP) weakens against the Japanese Yen (JPY) on Tuesday, slipping lower as a resilient US Dollar (USD) and a steady Yen weigh on the Pound’s appeal. The GBP/JPY pair is drifting toward its ascending trendline support, with traders remaining cautious ahead of the Federal Reserve’s (Fed) key interest rate decision on Wednesday, which could shape near-term risk appetite and set the tone for the next directional move.

The GBP/JPY is down nearly 0.70% on the day, trading around 195.30 and giving back all of Monday’s gains after failing to secure a break above 196.50 — a key level that has capped upside attempts since mid-May.

From a technical standpoint, the GBP/JPY pair remains technically supported above a rising trendline drawn from the early April swing lows, but the recent rejection at 196.50 keeps buyers on the defensive for now. The pair is clinging to its 21-day Exponential Moving Average (EMA), currently near 194.76, which aligns with the trendline and acts as immediate support.

The 14-day Relative Strength Index (RSI) remains just above 50 but is flattening out, indicating waning bullish momentum if no new drivers emerge. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains marginally positive but shows limited follow-through, suggesting that price action may remain range-bound in the near term.

On the upside, a daily close above 196.50 is needed to revive bullish momentum and pave the way for a test of the next key barrier at 198.26. A sustained move beyond this could bring the psychological 200.00 level back into focus. Conversely, a decisive break below the 21-day EMA and the trendline support near 194.80 would expose the pair to deeper losses, targeting the 50-day EMA at around 193.55, with further downside risk extending to the 192.00 handle.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Must Clear This Critical Cost Basis Level For Continued Upside, Analyst SaysIn a recent CryptoQuant Quicktake post, contributor Crazzyblockk highlighted key Bitcoin (BTC) cost basis zones that the leading cryptocurrency must clear – or avoid breaking below – to
Author  NewsBTC
4 Month 23 Day Wed
In a recent CryptoQuant Quicktake post, contributor Crazzyblockk highlighted key Bitcoin (BTC) cost basis zones that the leading cryptocurrency must clear – or avoid breaking below – to
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Samsung to Manufacture Tesla’s AI6 Chips in $16.5B Deal, Musk ConfirmsTesla CEO Elon Musk announced on Monday that the company has signed a $16.5 billion chip supply deal with Samsung Electronics, a move that could revitalize Samsung’s struggling contract chip manufacturing business. The agreement designates Samsung to produce Tesla’s upcoming AI6 chips, which are expected to power future versions of the automaker’s autonomous driving technology.
Author  Mitrade
7 Month 28 Day Mon
Tesla CEO Elon Musk announced on Monday that the company has signed a $16.5 billion chip supply deal with Samsung Electronics, a move that could revitalize Samsung’s struggling contract chip manufacturing business. The agreement designates Samsung to produce Tesla’s upcoming AI6 chips, which are expected to power future versions of the automaker’s autonomous driving technology.
placeholder
Asian FX Weighed by Dollar Ahead of Fed, BOJ TalksAsian currencies steadied on Tuesday following sharp declines in the prior session, as the U.S. dollar gained support after the announcement of a trade agreement between the United States and the European Union.
Author  Mitrade
23 hours ago
Asian currencies steadied on Tuesday following sharp declines in the prior session, as the U.S. dollar gained support after the announcement of a trade agreement between the United States and the European Union.
placeholder
Philips Q2 Net Income Slumps on One-Time Item; Margins and Cash Flow Show GainsRoyal Philips announced a 47% drop in net income for the second quarter, with earnings falling to €240 million from €452 million in the same period last year. This decline primarily stems from the absence of a €538 million one-off insurance gain recorded in the prior year linked to the Philips Respironics recall. Operating income also fell markedly to €400 million from €816 million.
Author  Mitrade
22 hours ago
Royal Philips announced a 47% drop in net income for the second quarter, with earnings falling to €240 million from €452 million in the same period last year. This decline primarily stems from the absence of a €538 million one-off insurance gain recorded in the prior year linked to the Philips Respironics recall. Operating income also fell markedly to €400 million from €816 million.
Related Instrument
goTop
quote