GBP/JPY Price Forecast: Post-BoJ JPY Weakness Lifts Pair Above 211.00 to Over One-Week Highs

GBP/JPY moves into positive territory for a third consecutive day as the JPY weakens following the BoJ decision.
The GBP draws support from strengthening expectations of a BoE rate hike, adding to the day's gains.
With technical signals remaining mixed, aggressive bullish positions call for caution.

Buying on dips lifts GBP/JPY into positive territory for a third consecutive day on Friday, with the cross reaching its highest level in over a week in early European trading. Buyers emerged around 210.60-210.55, and spot prices now stand near 211.25-211.30, nearly 0.15% higher on the day. The cross remains on course for modest gains over the week.

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Support for the British Pound (GBP) continues to come from hawkish expectations for the Bank of England (BoE), providing a further lift to GBP/JPY. By contrast, the Japanese Yen (JPY) has failed to sustain its brief advance following the Bank of Japan (BoJ) decision. As widely expected, the BoJ kept its main rate at 1.25% while leaving scope for further increases. The initial reaction faded, however, as Governor Kazuo Ueda provided no fresh, definitive guidance on precisely when the next move might come.

Further upside finds technical support in the intraday break above the 38.2% Fibonacci retracement level. Momentum indicators also look constructive: the Moving Average Convergence Divergence (MACD) remains positive, while the Relative Strength Index (RSI) is close to 56. Nevertheless, with GBP/JPY still trading below its key 200-day Simple Moving Average (SMA), the improvement points only to attempts to move higher, not a clear change in trend.

For any further advance, the first hurdle could be the 50% retracement at 212.20. Beyond that lie the 200-day SMA at 212.91 and the 61.8% retracement at 213.47. Further resistance stands at 215.26 and then 217.55, which marks the 78.6% retracement of the recent swing. If prices decline, the 38.2% retracement at 210.94 offers immediate support, followed by the 23.6% level at 209.38. A more substantial structural floor lies lower, near the cycle low around 206.85.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

GBP/JPY: what does the daily chart indicate?

How Has Pound Sterling Performed This Week?

The British Pound (GBP) recorded its strongest performance against the New Zealand Dollar this week. Its percentage moves against the major currencies listed are set out in the table below.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.16%	-0.31%	0.22%	-0.61%	0.18%	0.87%	-0.34%
EUR	-0.16%		-0.49%	0.00%	-0.82%	-0.06%	0.65%	-0.56%
GBP	0.31%	0.49%		0.44%	-0.33%	0.43%	1.19%	-0.10%
JPY	-0.22%	0.00%	-0.44%		-0.77%	-0.09%	0.69%	-0.65%
CAD	0.61%	0.82%	0.33%	0.77%		0.72%	1.41%	0.23%
AUD	-0.18%	0.06%	-0.43%	0.09%	-0.72%		0.71%	-0.70%
NZD	-0.87%	-0.65%	-1.19%	-0.69%	-1.41%	-0.71%		-1.23%
CHF	0.34%	0.56%	0.10%	0.65%	-0.23%	0.70%	1.23%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. For instance, choosing the British Pound on the left and following its row across to the US Dollar gives the percentage change for GBP (base)/USD (quote) in the intersecting cell.