GBP/JPY Steadies Amid Yen Support Doubts

The GBP/JPY currency pair has steadied after the Japanese Yen gave back part of its intervention-driven gains. The British Pound modestly outperformed the Japanese Yen on Thursday, with the pair trading near 212.53.

However, experts are questioning the support for the Yen as Japan plans to implement tax cuts and household handouts. Rabobank's Bas van Geffen notes that these measures do not lead to investments that could structurally improve Japan's economic growth, leaving the Yen without durable support.

The pair remains supported by the 200-day Simple Moving Average (SMA) at 211.85, but the slide away from recent highs and a subdued Relative Strength Index (RSI) around 36 indicate downside momentum remains dominant.