GBP/JPY Price Analysis: Bulls broke the 211.50 resistance area

The Pound (GBP) trades higher against the Japanese Yen (JPY) for the second consecutive day on Tuesday. Bulls have pushed the pair above the top of last week’s trading range, at the 211.50 area, reaching fresh April highs above 211.65 at the time of writing.

The pair has regained more than half of late-March’s losses, with the GBP showing stronger resilience than the Yen to the consequences of Iran’s war. Investors are increasingly concerned that the high Crude prices, coupled with Prime Minister Sanae Takaichi’s stimulus programs, might trigger an inflation spiral in Japan, which is weighing heavily on a traditional safe asset, such as the Yen.

Technical Analysis

GBP/JPY shows an increasing bullish momentum. Monday's bullish engulfing candle in the daily chart and the breach of the 211.50 resistance area on Tuesday have given bulls fresh hopes to extend gains towards the 212.00 area and beyond.

Momentum indicators endorse that view. The 4-hour Relative Strength Index (RSI) has advanced from oversold territory into the 60 area, signaling recovering upside pressure, and the Moving Average Convergence Divergence (MACD) line holds above the signal line in positive territory with a gently widening positive reading. This reinforces the view that buyers are gradually gaining control.

Price action suggests that the pair is in the C-D leg of a Gartley pattern. The 61.8% Fibonacci retracement of the mentioned late March downtrend, at 211.92, might offer some resistance. A potential target for this figure, though, is the area between late March lows, at 212.30, and the 78.2% retacement of the same cycle, at 212.55.

Support is seen at 210.35, which held bears on April 2 and 6, closing the path to the March 31 low, at 209.65.

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