GBP/JPY Consolidates Near 217.00 as Risk Aversion Dominates Markets

The GBP/JPY currency pair has been consolidating near the 217.00 level on Monday, as risk aversion dominates markets due to uncertainty over the Middle East conflict.

Risk-averse investors are moving into haven assets like the US Dollar and Gold, causing a shift in market flows.

The Relative Strength Index (RSI) has stalled at the 60 reading over the last two days, after bouncing from the 50-neutral level. This suggests that momentum has shifted bullish, but further upside is needed for a continuation of this trend.

For a bullish continuation, the GBP/JPY must clear 217.00, with the next stop being a downslope resistance trendline at around the 217.20-30 range, followed by the 218.00 mark and the July 30 high at 218.69.