• GBP/JPY has been trending upward since February 7, fueled by Yen weakness and GBP strength.
• A symmetrical triangle pattern on the daily chart suggests a potential breakout and bullish rally, possibly to 222.00.
• Key support levels are 194.00, 193.50, 192.00, while resistance levels are 197.50, 198.96, 200.00.

The GBP/JPY is one of the more volatile currency pairs and usually provides ample movement and potential opportunities.

In the past few weeks, Yen weakness and resurgent GBP have led the pair higher since bottoming out on February 7 at around the 187.00 handle.

This came about despite increased hopes of further Bank of Japan (BoJ) rate hikes later this year. Bank of Japan (BoJ) Governor Kazuo Ueda said on Wednesday that the central bank will keep raising interest rates if the economy and prices grow as expected. Additionally, strong wage increases for the third year in a row are fueling hopes for more rate hikes by the BoJ.

Meanwhile developments across the pond in the UK suggest further rate cuts may be in offing after the Office for National Statistics reported on Wednesday that the UK’s main inflation rate (CPI) rose 2.8% in February compared to a year ago, down from 3.0% in January. This was lower than the 2.9% economists had predicted. Core inflation, which removes changes in food and energy prices, increased by 3.5% in February, less than the 3.7% seen in January and below the expected 3.6%.

All in all its supposed to read a weaker GBP as rate cuts are expected and JPY strength as rate hikes are planned. However this is not how price action has developed over the past few weeks.

Price action and chart patterns are hinting at a major bullish rally for GBP/JPY so let us see what the charts look like.

Technical Analysis – GBP/JPY

GBP/JPY Daily Chart, March 27, 2025

Source TradingView

From a technical standpoint, GBP/JPY on a daily timeframe has staircased its way higher since February 7.

The pair has been trading in a massive symmetrical triangle pattern with a breakout today looking likely.

Trading triangle patterns requires patience, however there is definitely a setup brewing.

A daily candle close above the triangle pattern will be the signal for triangle pattern setup based on the rules. However given the fickle nature of markets in recent times, there is a possibility of a short-term pullback and for that we need to take a look at the H4 chart for potential areas of interest to pay attention to.

GBP/USD Four Hour Chart, March 27, 2025

Source TradingView

Dropping down to a four-hour chart and we have just printed fresh highs which could lead to a potential pullback.

However, there is also the possibility that the pair rises further before any pullback comes to fruition.

The period 14 RSI is also just short of being in overbought territory.
OAU-PRS-236-MarketPulse-variant1-Square

A pullback to the March 26 low around the 193.50 handle may provide bulls with an even better entry following the triangle breakout. If this level fails to hold, a deeper pullback toward the swing low at 192 may be in the offing.

Either way if the triangle pattern does play out, the potential move could take GBP/JPY to highs of around 222.00, last reached before the global financial crisis in December 2007.

A mega move if there ever was one.

Support

• 194.00
• 193.50
• 192.00
• 190.00

Resistance

• 197.50
• 198.96
• 200.00
• 201.65

Created on March 31, 2025

• The British pound continues to go back and forth as we have seen a lot of noise in the currency markets right now and a lot of sideways action by the time you take everything into account.
• The British pound has been a little bit stronger than many other currencies as it has outperformed.
• Well, probably for the last two years against the US dollar, even though it fell, it fell less than other currencies like the euro, for example.

Now we find ourselves digesting a massive move higher as we have been going sideways for a couple of weeks. The 1.30 level above is a barrier while the 1.29 level underneath is support. We recently had the so-called Golden Cross and therefore longer term traders will assume this is a bullish market.

On a Move Higher

If we can break above the 1.3050 level, then I think it’s very likely that the British pound has much further to go, perhaps as high as 1.34. On a breakdown below the 1.2875 level, then we could see the market drop down to the 1.2750 level, possibly even the 200-day EMA. In general, I think this is a market that continues to be very noisy, but the British pound is a stronger performer in general terms than the US dollar against other currencies.

So, I think it probably has more of a lean to the upside in the short term. We’ll just have to wait and see whether or not that continues here. In that situation, the market will likely to be one that outperform other currencies against the US dollar. The market will continue to pay close attention to risk appetite for currencies outside of the US, and there is a high likelihood that buyers will eventually show up again.

Ready to trade our daily GBP/USD Forex forecast? Here’s some of the best forex broker UK reviews to check out.

USD/JPY price kept falling in latest intraday trading, thus finishing the negative harmonic Gartley pattern as we expected, and breaching the support of an ascending correctional price channel that guided latest short-term trading, while also trespassing the support of the 50-candle SMA, reinforcing negative pressure on upcoming trading, with negative signals emerging from the Stochastic despite reaching oversold levels.

USD/JPY price kept falling in latest intraday trading, thus finishing the negative harmonic Gartley pattern as we expected, and breaching the support of an ascending correctional price channel that guided latest short-term trading, while also trespassing the support of the 50-candle SMA, reinforcing negative pressure on upcoming trading, with negative signals emerging from the Stochastic despite reaching oversold levels.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.

Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.

Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.

It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.

Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.