The currency pair climbed to a three-week high, supported by Sterling strength and Japanese Yen depreciation, trading at 217.31.
The GBP/JPY cross broke a key downtrend resistance line and held above 217.00 on Tuesday, rising 0.20% to 217.31. The move followed a three-week high of 217.48, driven by a weaker Yen and stronger Sterling.
Prior to the breakout, the pair had consolidated below the downtrend line, with technical indicators suggesting buyer momentum. The Relative Strength Index (RSI) signals growing bullish pressure, though the pace remains gradual, raising risks of a reversal.
Resistance levels are seen at 217.20, 218.00, and the July 30 peak of 218.69. Support lies at 217.00, followed by 216.50 and 216.00, with deeper pullbacks targeting the 50-day SMA at 215.72.