GBP/JPY Holds Steady Amidst Bearish Sentiment

The GBP/JPY currency pair has been holding steady at around 208.30, despite the prevailing bearish sentiment in the market. This comes as investors continue to show caution due to rising energy prices and bond yields, which may indicate a potential resurgence of inflation.

From a technical standpoint, the pair is trading near its monthly lows around 207.00, a level that was previously supported by Japanese authorities intervening in FX markets. A break below this level would put the November 14 swing low at 202.34 and eventually the 200.00 psychological level within reach.

The Relative Strength Index (RSI) has climbed back above the 30 oversold threshold, which may suggest a potential short-term rebound in the market. However, traders are advised to closely monitor the 207.00 support level, as bearish pressure continues to build.