GBP/JPY Price Forecast: Bulls test 214.50 resistance as upside momentum improves
GBP/JPY trades with a positive bias on Monday as the British Pound (GBP) outperforms the Japanese Yen (JPY) amid improving market sentiment surrounding a potential US-Iran deal. At the time of writing, the cross is trading around 214.52, up 0.30% on the day.
Optimism over a possible breakthrough in negotiations between the United States (US) and Iran improved risk appetite after reports suggested both sides were making progress toward a temporary agreement that could eventually reopen the Strait of Hormuz.
However, a report from The Wall Street Journal on Monday suggested negotiations continue to face hurdles over disagreements tied to Iran’s nuclear program and sanctions relief. While key issues remain unresolved, ongoing diplomatic efforts continue to support cautious optimism in markets.
The latest headlines drag Oil prices lower, easing fears of an Oil-driven inflation shock. Still, prices remain well above pre-war levels, leaving the Japanese Yen under pressure as elevated Energy costs continue to pose a key challenge for Japan’s import-dependent economy.
Technical Analysis:
On the daily chart, GBP/JPY holds a constructive bullish bias as it grinds against the horizontal resistance at 214.50. The pair remains well above both the 100-day and 200-day Simple Moving Averages (SMAs) at 212.36 and 207.94, which suggests the broader uptrend stays intact, while a mildly positive Relative Strength Index (RSI) around 56 and a slightly positive Moving Average Convergence Divergence (MACD) reading hint at recovering upside momentum.
On the topside, immediate resistance is located at 214.50, and a sustained break above this barrier would open the way for further gains in the near term.
On the downside, initial support is seen at the 100-day SMA around 212.36, followed by the horizontal floor near 210.00, with the 200-day SMA at 207.94 reinforcing the broader bullish structure on deeper pullbacks.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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