GBP/JPY Surges Above Key Trendline Resistance

The GBP/JPY currency pair broke above the 217.00 level after breaking a short-term descending trendline, signaling a potential shift in momentum as of mid-session trading on March 12, 2025.

This break suggests that buyers are regaining control after a period of consolidation and that the pair's ability to sustain gains above 217.00 is now critical for confirming the bullish reversal.

The Relative Strength Index (RSI) has climbed above the 50 midpoint on the 4-hour chart, indicating improving bullish momentum, while the Moving Average Convergence Divergence (MACD) has printed a fresh bullish crossover, reinforcing the case for further upside.

Fundamental drivers include diverging monetary policy paths, with the Bank of England maintaining a gradual easing cycle and the Bank of Japan being cautious on rate hikes. This policy divergence continues to favor GBP/JPY bulls, but traders should remain cautious ahead of key UK GDP and US CPI data due later this week.