The pair recovers from a dip below its 200-day moving average following coordinated US-Japan FX market intervention comments.
The British Pound pared losses against the Japanese Yen, trading down 0.24% at 212.64 after briefly slipping below its 200-day simple moving average (SMA) of 211.91. The move followed remarks from Japanese and US officials acknowledging FX market volatility driven by speculative moves rather than fundamentals, triggering a sharp intraday drop to 211.47.
Earlier in the week, GBP/JPY showed resilience, poised to close with modest gains despite broader Yen strength. The pair now faces resistance at the 100-day SMA (214.48) and 50-day SMA (215.42), while support levels hold at 212.00 and 211.91. Downside risks include a test of the August 3 low at 209.58 if selling pressure resumes.
The Yen emerged as the strongest major currency this week, outperforming the Pound amid shifting risk sentiment and intervention concerns. Market focus remains on central bank policy divergence and external shocks influencing FX volatility.