FX.co ★ Blackpink | GBP/JPY

GBP/JPY is supported by opens with buyers at the start of the trading week, and the pair holds its bid momentum in the 208.25-208.30 range throughout the first half of the European session. However, spot prices remain near the year-to-date lows set last Tuesday, ahead of this week's key central bank events, and investors are reluctant to take new positions. The BoE rate decision is expected on Wednesday, while the results of the two-day BoJ meeting will be announced on Friday. The Bank of England is widely expected to hold interest rates steady, while market participants have already priced in a 25 bps BoJ rate hike. As a result, attention will focus on the future monetary policy path, which will play a significant role in driving GBP/JPY. Spot prices continue to show a negative outlook below the 200-day SMA and the 23.6% Fibonacci retracement level of the rally in April 2025-July 2026. In addition, the range-bound price activity over the last week or so may still be viewed as a consolidation pattern amid the current decline. This supports the argument for continued continuation of the well-identified downward trend since the start of this month. The MACD indicator, meanwhile, remains negative, while RSI continues to hover around 30, implying continued bearishness despite the emerging oversold condition. Thus, any recovery attempt could face selling pressure around the 23.6% Fibonacci retracement level of 211.38; a breakout would mark the start of a potential shift in the bearish tone. In any case, it will require a convincing break above the 200-day SMA level of 213.11 to begin questioning the prevailing bearish tone, with subsequent resistance levels eyed towards 219.69. However, on the downside, support comes at the 38.2% Fibonacci retracement level at 206.24, then the 50% retracement level at 202.08, where selling may pause for now. Further downside will take the price to the 61.8% Fibonacci retracement level at 197.93 and the 78.6% Fibonacci retracement level. .