Select Language

GBP/JPY Price Forecast: Seems poised to build on momentum beyond 195.00 mark

Breaking news

GBP/JPY Price Forecast: Seems poised to build on momentum beyond 195.00 mark

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.04 18:02
GBP/JPY Price Forecast: Seems poised to build on momentum beyond 195.00 mark

update 2025.06.04 18:02

  • GBP/JPY attracts buyers for the second straight day and touches a fresh weekly high.
  • The overnight bounce from the 200-day SMA and subsequent move up favor bulls.
  • Dips to the 194.35 area could be seen as a buying opportunity and remain limited.

The GBP/JPY cross builds on the previous day's goodish rebound from the 192.75-192.70 area, or over a one-week low, and gains positive traction for the second straight day on Wednesday. The momentum lifts spot prices to a fresh weekly low during the first half of the European session, with bulls now awaiting a sustained strength beyond the 195.00 psychological mark before placing fresh bets.

From a technical perspective, the GBP/JPY cross once again showed some resilience near the very important 200-day Simple Moving Average (SMA), and the subsequent move-up favors bullish traders. Moreover, positive oscillators on the daily chart suggest that the path of least resistance for spot prices remains to the upside. Hence, some follow-through move-up towards the next relevant hurdle, around the 195.70 area, looks like a distinct possibility.

The GBP/JPY cross might then aim to surpass the 196.00 round figure and retest the May monthly swing high, around the 196.25-196.30 region. A sustained strength beyond the latter could be seen as a fresh trigger for bulls and lift spot prices to the 197.00 round figure for the first time since January. The momentum could extend towards the 197.40-197.50 hurdle en route to the 198.00 mark and the 198.25 region, or the year-to-date peak touched in January.

On the flip side, any corrective pullback now seems to attract some dip-buyers near the 194.35 region, or the daily trough. This, in turn, should help limit the downside for the GBP/JPY cross near the 194.00 round figure. Failure to defend the said handle could make the currency pair vulnerable to accelerate the downward trajectory towards 193.45 intermediate support en route to the 193.00 mark and the 192.70 region, or the pivotal 200-day SMA.

GBP/JPY daily chart

Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.


Date

Created

 : 2025.06.04

Update

Last updated

 : 2025.06.04

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

FX option expiries for Jun 6 NY cut

FX option expiries for Jun 6 NY cut at 10:00 Eastern Time vi a DTCC can be found below.
New
update2025.06.06 14:37

USD/CHF Price Forecast: Hovers above 0.8200 near nine-day EMA barrier

The USD/CHF pair extends its gains for the second successive session, trading around 0.8200 during the Asian hours on Friday. However, the bearish bias is prevailing as the pair moves downwards within the descending channel pattern.
New
update2025.06.06 14:29

ECB's Muller: Agree with Lagarde that cycle almost finished.

European Central Bank (ECB) policymaker Madis Muller said on Friday that he "agrees with President Christine Lagarde that the cycle is almost finished."
New
update2025.06.06 14:20

USD/INR gains as RBI surprisingly cuts repo rate by 50 bps to 5.5%

The Indian Rupee (INR) weakens against the US Dollar (USD) and falls to near 86.00 during Asian trading hours on Friday. The USD/INR pair strengthens as the Reserve Bank of India (RBI) has unexpectedly cut its Repo rate by 50 basis points (bps) to 5.5%.
New
update2025.06.06 14:19

Nonfarm Payrolls set to show US labor market weakened in May as tariff policy weighs

Nonfarm Payrolls (NFP), one of the most high-impact economic data releases in the United States (US), is expected to show a further cooling of the jobs market.
New
update2025.06.06 14:00

Silver Price Forecast: XAG/USD maintains position above $36.00 near multi-year highs

Silver price (XAG/USD) remains stronger for the second successive session, maintaining its position near the highest level since February 2012. The price of the grey metal is trading around $36.00 per troy ounce during the Asian hours on Friday.
New
update2025.06.06 13:38

India Gold price today: Gold rises, according to FXStreet data

Gold prices rose in India on Friday, according to data compiled by FXStreet.
New
update2025.06.06 13:35

Gold price trades with positive bias below $3,400, multi-week top ahead of US NFP

Gold price (XAU/USD) attracts some dip-buying during the Asian session on Friday and reverses a part of the previous day's retracement slide from levels just above the $3,400 mark or over a four-week peak.
New
update2025.06.06 13:32

GBP/USD hovers above 1.3550 ahead of US Nonfarm Payrolls

GBP/USD maintains its position near 1.3616, the highest since February 2022, which was recorded on June 5. At the time of writing, the pair is trading around 1.3570, with little moves ahead of labor market data from the United States (US).
New
update2025.06.06 12:47

USD/CAD trades cautiously near 1.3650 ahead of US/Canada employment data

The USD/CAD pair strives to hold an almost eight-month low of 1.3635 during Friday's Asian trading session, posted the previous day.
New
update2025.06.06 12:13

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel