GBP/JPY Price Forecast: Intervention shock exposes 210.00

The GBP/JPY tanks amid speculation of intervention by Japanese authorities in the FX markets, driven by a rate check by Tokyo. The cross-pair drops more than 300 pips, trades at 210.92, down by more than 1.40%.

GBP/JPY Price Forecast: Technical Outlook

On Thursday, GBP/JPY extended its losses, clearing the 200-day Simple Moving Average (SMA) at 213.04 on its way towards the 210.00 area, leaving behind the 212.00 and 211.00 psychological levels.

Momentum shifted bearishly, as seen in the Relative Strength Index (RSI), which turned oversold, indicating that the pair may be susceptible to a mean-reversion move. This is possible if the RSI gets above the 30 level.

For a bullish recovery, the GBP/JPY must clear the 212.00 area ahead of challenging the 200-day SMA at 213.06. If cleared, the next area of interest in play will be the 100-day SMA at 215.04.

Conversely, the path of least resistance is for GBP/JPY to dive below 210.00, with a move to the March 31 swing low of 209.64 on the cards. On further weakness, the next area of support would be the 209.00 milestone.

GBP/JPY Price Chart – Daily