GBP/JPY Price Forecast: Looking for direction above 198.25 support

The Pound treads water as the Yen loses momentum, with market sentiment improving.
The bearish correction from last week's highs near 200.00, remains contained above 198.25 for now.
On the upside, the Pound would need to clear Monday's top, at 198.80, to ease bearish pressure.

The Pound is picking up on Tuesday, but so far remains trapped within Monday's narrow trading range, at a short distance above the 198.25 support level. The pair is on a bearish correction from last week's highs, right below 200.00 within a broader bullish trend.

A brighter market mood is providing some support to the British Pound on Tuesday, to the detriment of the safe-haven Yen. Gross Domestic Product and Industrial Production data from China revealed that the world's second-largest economy remains growing at a solid pace despite US tariffs, easing concerns about the uncertain outlook of international trade.

Technical Analysis: Correcting lower from the 200.00 resistance area

The GBP/JPY's immediate trend remains negative, although the brighter market sentiment has eased bearish momentum. Price action remains contained below Monday's high, at 198.80, although the 4-hour RSI has crossed above the 50 level that divides the bullish from the bearish territory.

The pair needs to break the mentioned 198.80 resistance area to ease bearish pressure and shift the focus towards the July 11 high, at 199.45, and the July 10 high, at 199.85.

On the flip side, a bearish reaction below the June 14 low at 198.25 would find support at the July 7 low, which crosses the bottom of the ascending channel, near 196.80.