GBP/JPY Sells Off Sharply, Tests 200-Day SMA

The British pound against the Japanese yen has seen a sharp sell-off, pushing the pair below its 100-day Simple Moving Average (SMA) for the first time since April 2025.

The GBP/JPY rose on Tuesday due to the Japanese Yen giving back part of its recent rally, which was driven by coordinated intervention from Tokyo and Washington. The cross trades around 211.55, up 0.20% on the day.

Analysts at MUFG/BTMU argue that the recent bout of joint FX intervention offers only partial and temporary relief for the Yen. They stress that 'on balance, we expect US intervention to support the [Y]en to remain relatively small in scale,' even if coordinated action with Japan helps steady the currency in the near term.

The near-term technical picture for GBP/JPY has turned bearish, with the pair testing the 200-day SMA. The Relative Strength Index (RSI) is near 30, hinting at oversold conditions and the Moving Average Convergence Divergence (MACD) remains deeply negative, reinforcing selling pressure.