- GBP/JPY holds above the 180.00 area amid the fear of FX intervention by Japanese authorities.
- The cross holds below the 50- and 100-hour EMAs with the bearish RSI on the four-hour chart.
- The first resistance level is seen at 181.58; 180.00 acts as an initial support level.
The GBP/JPY cross manages to find support above the 180.00 level during the early European session on Wednesday. The downtick of the pair is supported by the fear of FX intervention by Japanese authorities. The cross currently trades around 180.13, gaining 0.09% on the day.
Early Wednesday, Japan’s top currency diplomat Masato Kanda said any intervention would not target forex levels but volatility while mentioning that it's normal for authorities not to comment on whether they intervened or not. Additionally, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said on Monday that he will continue to take appropriate steps on FX, but still have no comment on whether Japan intervened in the FX market.
From the technical perspective, the GBP/JPY cross holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, highlighting the path of least resistance for the cross is to the downside.
The first resistance level of GBP/JPY is seen near the 50-hour EMA at 181.58. The additional upside filter to watch is at 182.17 (the 100-hour EMA). Further north, the next stop is located near the upper boundary of the Bollinger Band at 183.42. Any follow-through buying above the latter will see a rally to a high of September 15 at 183.90.
On the downside, 180.00 acts as an initial support level for the cross. Any decisive break below the latter will see a drop to the lower limit of the Bollinger Band at 179.43, en route to 178.85 (a low of June 16).
It’s worth noting that the Relative Strength Index (RSI) is located in bearish territory below 50, highlighting that further downside cannot be ruled out.
GBP/JPY four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD moves little after monthly Aussie CPI, stuck in a range around 0.6300
AUD/USD flat-lines around the 0.6300 mark during the Asian session on Wednesday and moves little following the release of monthly Australian CPI, which rose 2.4% YoY in February compared to 2.5% previous. Meanwhile, the uncertainty over Trump's reciprocal tariffs set to take effect on April 2 caps the upside for spot prices.
USD/JPY holds steady near 150.00 as traders await inflation data from Japan and the US
USD/JPY consolidates during the Asian session on Wednesday amid mixed cues. A positive risk tone undermines the safe-haven JPY and lends support. That said, the divergent BoJ-Fed policy expectations and worries about Trump's tariffs act as a tailwind for the JPY, capping spot prices amid subdued USD price action.
Gold price consolidates around $3,020 area amid mixed cues
Gold price trades comfortably above the $3,000 mark, though bulls lack conviction as a positive risk tone caps gains for the safe-haven bullion. However, worries about a US recession, Trump's trade tariffs, Fed rate cut bets, and subdued USD demand act as a tailwind for the commodity ahead of the US PCE Price Index on Friday.
Ripple will no longer pursue cross-appeal against SEC, XRP remains flat
Ripple confirmed on Tuesday that it will no longer pursue its cross-appeal against the United States Securities and Exchange Commission. XRP's price remained fairly muted despite the positive development.
Seven Fundamentals for the Week: Tariff news, fresh surveys, the Fed's preferred inflation gauge are eyed Premium
Reports and rumors ahead of Trump’s reciprocal tariffs announcement next week will continue moving markets. Business and consumer surveys will try to gauge where the US economy is heading. Core PCE, the Fed's preferred inflation gauge, is eyed late in the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.