GBP/JPY Breaks Trendline as Buyers Regain Control

GBP/JPY is showing signs of a potential shift in momentum after breaking through a short-term descending trendline, which had previously capped upside attempts since early March. The break above 217.00 has sparked bullish signals, with technical indicators on the 4-hour chart turning supportive.

The Relative Strength Index (RSI) has climbed above the 50 midpoint, indicating improving bullish momentum, while the Moving Average Convergence Divergence (MACD) has printed a fresh bullish crossover. This suggests that buyers are regaining control after a period of consolidation.

Fundamental drivers also favor GBP/JPY bulls, with the pound finding support from expectations of a gradual easing cycle by the Bank of England. In contrast, the yen remains under pressure due to the Bank of Japan's cautious stance on further rate hikes.

However, traders should remain cautious ahead of key UK GDP and US CPI data due later this week, which could inject volatility into the pair. A stronger-than-expected UK data could extend gains, while a disappointing print might trigger a retest of the trendline break.