The currency pair recovers nearly all losses from late July’s USD/JPY intervention as yen headwinds outweigh short-term support measures.
GBP/JPY climbed to 217.10 on Tuesday, erasing most of the decline sparked by the late-July US-Japan intervention to prop up the yen. The pair rose 0.12% on the day, reflecting fading impact from the coordinated move after USD/JPY hit a 40-year high above 160.
Japan’s expansionary fiscal policy, elevated government debt, and a wide interest-rate gap with major economies continue to pressure the yen. The technical outlook remains bullish, with limited economic data from the UK or Japan this week beyond Friday’s Tokyo CPI release.
On the 4-hour chart, GBP/JPY holds above its 20-period SMA near 216.84, with the RSI at 61 signaling steady upside momentum. Resistance sits at the Bollinger upper band around 217.47, while the ADX near 29 suggests a strengthening trend.