The GBP/JPY pair extended its losing streak for the second consecutive session on Thursday, retreating further from the 195.00 psychological level—a two-month high. Spot prices slipped below the 193.00 mark during Asian trading hours, pressured by a broadly stronger Japanese Yen (JPY).
BoJ Outlook and Geopolitical Risks Bolster Safe-Haven Yen
The Japanese Yen gained traction as expectations of strong wage growth fueled speculation that the Bank of Japan (BoJ) could continue raising interest rates. Additionally, geopolitical uncertainty and concerns over US President Donald Trump’s trade policies further bolstered demand for the safe-haven JPY, adding downward pressure on GBP/JPY.
Meanwhile, the British Pound (GBP) struggled for direction as traders remained cautious ahead of the Bank of England (BoE) policy decision.
Technical Outlook: GBP/JPY Faces Key Support Levels
From a technical perspective, the pair recently failed to sustain gains above the crucial 200-day Simple Moving Average (SMA), triggering renewed selling pressure. However, daily chart oscillators remain in positive territory, suggesting caution before committing to a deeper bearish outlook.
The 192.50 level, a key resistance-turned-support zone, could limit the immediate downside. A break below this level may accelerate losses toward 192.00, followed by the 191.35–191.30 support region. Further selling pressure could push GBP/JPY below 191.00, with the next key levels at 190.45–190.40 and the psychological 190.00 mark, extending down to 189.70–189.65.
On the upside, resistance is seen near 194.00, followed by the 200-day SMA at 194.30. A decisive break above 194.90—a multi-month high reached earlier this week—could open the door for further gains toward 196.00 and the 196.40 resistance zone. A sustained rally beyond this point could see GBP/JPY testing the 197.00 mark for the first time since January.
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