GBP/JPY on Tuesday as the Japanese Yen (JPY) gives back part of its recent rally, which was driven by coordinated intervention from Tokyo and Washington.
At the time of writing, the cross trades around 211.55, up 0.20% on the day
Yen support from US intervention seen as limited and time-buying Analysts at MUFG/BTMU argue that the recent bout of joint FX intervention offers only partial and temporary relief for the Yen. They stress that, “on balance, we expect US intervention to support the yen to remain relatively small in scale,” even if coordinated action with Japan helps steady the currency in the near term. In their view, “while joint intervention may prove more effective at helping to provide support for the yen in the near-term, we still believe that it can only buy time.” MUFG/BTMU conclude that, ultimately, “there will need to be a change in fundamentals as well to encourage a sustainable reversal of the yen weakening trend that has been in place over the last five years.” Despite Tuesday’s rebound, the near-term technical picture for GBP/JPY has turned bearish.
The recent sell-off pushed the cross decisively below the 100-day Simple Moving Average (SMA) for the first time since April 2025, with the pair now testing the 200-day SMA. Technical analysis On the daily chart, GBP/JPY trades below the 100-day Simple Moving Average (SMA) at 214.45 and hovers around the 200-day SMA at 211.75, keeping the near-term bias tilted to the downside. The Relative Strength Index (RSI) near 30 hints at oversold conditions and the Moving Average Convergence Divergence (MACD) remains deeply negative, reinforcing selling pressure.