GBP/JPY Price Forecast: Buyers remain in control despite near-term consolidation

The British Pound (GBP) ticks lower against the Japanese Yen (JPY) on Wednesday, extending losses for a second straight day. At the time of writing, GBP/JPY trades around the 211.00 psychological mark, down nearly 0.20%.

The pullback has so far remained contained, with the wide UK–Japan interest-rate differential continuing to underpin the cross near levels last seen in 2008. GBP/JPY climbed nearly 7% last year, underpinned by lingering fiscal concerns in Japan and the Bank of Japan’s (BoJ) cautious approach to policy normalisation, which has kept the Yen on the defensive.

Meanwhile, the Bank of England’s (BoE) gradual easing cycle has allowed the Pound to preserve its relative yield advantage, sustaining underlying demand for the cross.

From a technical perspective, GBP/JPY continues to trade within a well-defined uptrend, with the daily chart showing a clear sequence of higher highs and higher lows, reinforcing the broader bullish structure.

The 20-day Simple Moving Average (SMA), which also forms the middle Bollinger Band, continues to slope higher, with the pair holding above it and preserving a constructive near-term tone.

Momentum remains supportive, though signs of moderation are emerging. The Relative Strength Index (RSI) stands near 63.7, holding well above the neutral 50 mark, suggesting buyers remain in control despite easing from overbought levels. The Average Directional Index (ADX) at 32.83 reflects a firm trend environment, suggesting dips could remain contained.

On the upside, immediate resistance aligns with the upper band near 212.90. A daily close above the upper band would open room for an extension of the rally.

On the downside, initial support is seen around the middle band near 210.15, with a deeper pullback likely to find interest closer to the lower band in the 207.40 region.