GBP/JPY Price Forecast: Bulls remain in control with RSI and MACD in positive territory
GBP/JPY trades under pressure on Friday after comments from Japan's Finance Minister Satsuki Katayama boosted the Japanese Yen (JPY). At the time of writing, the cross is trading around 217.10, down 0.30% on the day.
Katayama said the government would encourage domestic pension funds, including the Government Pension Investment Fund (GPIF), to increase their holdings of Japanese financial assets.
However, the remarks did little to reverse the Yen's broad-based weakness, leaving GBP/JPY pinned near levels last seen in 2008 and on track for a third consecutive weekly gain.
Meanwhile, the British Pound (GBP) remains the strongest-performing G10 currency in recent weeks, supported by Bank of England (BoE) interest rate hike bets and easing political uncertainty in the United Kingdom.
From a technical perspective, GBP/JPY maintains a bullish bias on the daily chart, holding above the 50-day, 100-day and 200-day Simple Moving Averages (SMAs), reinforcing the broader uptrend.
The cross also remains above the horizontal support at 216.50, while the Relative Strength Index (RSI) stands at 62.54, remaining in bullish territory. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator stays in positive territory at 0.33, suggesting upside momentum remains constructive.
On the upside, immediate resistance is located at the 218.00 horizontal barrier. A sustained break above this level could pave the way for an extension of the broader uptrend.
Initial support is seen at 216.50, followed by the 50-day SMA at 214.31 and the 100-day SMA at 213.51. The 200-day SMA at 210.57 provides the next major support if a deeper corrective pullback unfolds.
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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