Traders hesitate to push the cross-pair higher amid concerns over potential Japanese authorities intervening in USD/JPY markets.
The GBP/JPY pair closed Thursday nearly unchanged at 214.70, reflecting cautious trading as market sentiment improved after US President Donald Trump canceled planned attacks and signaled a possible deal. The cross-pair edged up 0.04% but struggled to extend gains due to fears of Japanese intervention in the USD/JPY market.
Technical analysis shows the pair consolidating below the June 5 high of 215.61, with momentum indicators like the RSI signaling indecision. A break above 215.24 could target 215.61 and the year-to-date high of 216.60, while support lies near the 20- and 50-day SMAs at 214.23-214.10.
If Japanese authorities intervene to strengthen the yen, the GBP/JPY could face downward pressure as the yen appreciates against most G8 currencies.