GBP/JPY Price Forecast: Refreshes daily peak, around 198.80 after UK PMIs

• GBP/JPY attracts fresh buyers and reverses a part of Wednesday's slide to a two-week low.
• The intraday positive momentum picks up pace following the release of the UK PMI prints.
• The mixed technical setup warrants some caution before positioning for any further gains.

The GBP/JPY cross regains positive traction on Thursday and moves away from a nearly two-week low, around the 197.85 area touched the previous day. The momentum picks up pace during the first half of the European session following the release of UK PMIs and lifts spot prices to a fresh daily peak, around the 198.75-198.80 region in the last hour.

From a technical perspective, the GBP/JPY cross showed resilience below the 200-day Exponential Moving Average (EMA) on Wednesday. The subsequent move up suggests that this week's corrective pullback from levels beyond the 200.00 psychological mark, or the highest level since July 2024, might have run its course and backs the case for a further appreciating move.

However, mixed oscillators on the daily/4-hour charts warrant caution. Hence, any further move up could face some resistance near the 199.00 round figure ahead of the 199.25 region. Some follow-through buying will reaffirm the positive outlook and lift the GBP/JPY cross beyond mid-199.00s, towards the 200 mark en route to the year-to-date peak, around the 200.25 region.

On the flip side, the 198.20-198.15 region, or the 200-day EMA, could act as an immediate support. Acceptance below the said support, leading to a subsequent break through the overnight swing low, around the 197.85 region, might shift the bias in favor of bearish traders. The GBP/JPY cross might then weaken further towards the 197.35 area en route to the 197.00 mark.

GBP/JPY 4-hour chart