GBP/JPY Fails to Break Above Key Resistance Amid Intervention Fears

The GBP/JPY exchange rate has been consolidating for three days, forming a 'bullish harami' chart pattern that could signal further gains. The pair is currently trading at 218.17, unchanged from previous levels.

Despite breaking below a key support trendline on July 21, sellers have failed to push the GBP/JPY below its floor at around 218.00. This suggests that speculation about the Bank of England raising interest rates could be favoring some upside for the pound.

However, the pair's advance is being capped by fears of Japanese intervention to strengthen the yen. To clear this hurdle and aim for a breakout above 219.00, the GBP/JPY must first overcome its year-to-date high at 219.61.