GBP/JPY Rebounds from July Intervention, Remains Bullish

The GBP/JPY currency pair has recovered from its intervention-led pullback in late July and is currently trading around 217.10, up 0.12% on the day.

The joint US-Japan intervention aimed to curb excessive weakness in the Japanese Yen after USD/JPY climbed above 160 to a forty-year high.

Japan's expansionary fiscal policy, high government debt and wide interest-rate gap with other major economies remain headwinds for the Japanese Yen.

The technical outlook for GBP/JPY stays tilted to the upside as it holds above the Bollinger Bands' 20-period simple moving average (SMA) around 216.84 while approaching the upper band near 217.47.