GBP/JPY Price Forecast: looking for direction between 209.00 and 210.00
- GBP/JPY hesitates between 209.00 and 210.00 halfway through the monthly range.
- The Yen has pulled back following soft Japanese PPI data and BoJ Ueda's comments.
- The pair is forming a triangle pattern with a bearish outcome favoured.
The British Pound (GBP) retraces previous losses against the Japanese Yen (JPY) on Tuesday, and returns to the mid-range of the 209.00s after bouncing from lows at 208.90 earlier in the day. Looking from a wider perspective, the GBP/JPY pair is showing hesitation between 209.00 and 210.00 halfway through the monthly trading range.
In Japan, Producer Price Index (PPI) data released earlier in the day undershot expectations. Inflation at the factory gate contracted unexpectedly, for the second consecutive month in September, and the yearly rate eased to 6.8% from 7.6% in August, against the market consensus that had anticipated a steady reading.
A few hours later, the Bank of Japan (BoJ) Governor Kazuho Ueda affirmed that inflation is approaching the 2% target and that the bank must ensure that it remains anchored at those levels, but conditioned further rate hikes on incoming data. The Yen depreciated after the comments
The UK calendar is thin on Tuesday, and investors will await Thursday’s Gross Domestic Product (GDP) and Industrial Production data to confirm hopes that the Bank of England will hike interest rates before the year-end.
Technical Analysis: Nearing the tip of a triangle pattern
GBP/JPY trades at 209.40, with recent price action forming a triangle pattern. Triangles are considered continuation patterns and, in that sense, a negative outcome is favoured. Momentum indicators on the 4-hour chart show a lack of clear bias, with the Relative Strength Index (14) wavering around 50, and the Moving Average Convergence Divergence (MACD) indicator slipping into slightly negative levels.
On the topside, the area between the triangle top, around 209.95, and the 210.00-210-20 area, which capped bulls several times in October, is closing the way towards the September 27 high, at 219.90, and the September 18 high, at 211.28.
Bearish attempts, on the other hand, remain contained at 208.90, where the triangle bottom lies, ahead of the October 4 and 8 lows at the 208.25 area and the early October lows around 207.60.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.29% | -0.27% | -0.35% | -0.16% | -0.21% | -0.41% | -0.28% | |
| EUR | 0.29% | 0.01% | -0.07% | 0.13% | 0.06% | -0.12% | 0.00% | |
| GBP | 0.27% | -0.01% | -0.08% | 0.08% | 0.05% | -0.14% | -0.00% | |
| JPY | 0.35% | 0.07% | 0.08% | 0.18% | 0.13% | -0.07% | 0.07% | |
| CAD | 0.16% | -0.13% | -0.08% | -0.18% | -0.05% | -0.25% | -0.11% | |
| AUD | 0.21% | -0.06% | -0.05% | -0.13% | 0.05% | -0.20% | -0.07% | |
| NZD | 0.41% | 0.12% | 0.14% | 0.07% | 0.25% | 0.20% | 0.14% | |
| CHF | 0.28% | -0.01% | 0.00% | -0.07% | 0.11% | 0.07% | -0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).