GBP/JPY Plummets as Speculation Fuels Japanese Yen's Surge

The GBP/JPY exchange rate has fallen sharply due to speculation about an intervention in the FX markets, causing the Japanese Yen to appreciate against most G8 currencies.

The Pound Sterling collapsed versus the Japanese Yen by over 1.10%, with a current price of 214.08. This significant decline has led to the cross-pair dipping below the 100-day Simple Moving Average (SMA) at 215.08, indicating further downside and putting the 214.00 milestone in play.

The Relative Strength Index (RSI) shows that momentum shifted strongly bearish, with sellers regaining control. The path of least resistance is now tilted to the downside, and if the GBP/JPY falls below 214.00, it will expose the 200-day SMA as the next support at 213.02.

However, if buyers drive the exchange rate above the 100-day SMA, this could trigger some consolidation between the 215.08-216.04 area, with the latter being the 50-day SMA.