The GBP\/JPY exchange rate remains below the 211.60 resistance as the British Pound continues a mild upward trend against the Japanese Yen. This occurs amidst modest risk sentiment and reduced trading volumes due to New Year closures in China and Japan.<\/p>\n
UK Manufacturing PMI is set to confirm improved business activity in December, predicted to rise to 51.2 from 50.2 in November. Despite this, the release will have limited impact unless the figures are much different from initial estimates.<\/p>\n
GBP\/JPY trades at 211.17, with attempts to surpass 211.50 not yet successful. A bearish divergence with the RSI points to a possible downward reversal, with immediate support at the trendline around 210.15 to 210.05. <\/p>\n
If the bulls succeed in breaking 211.59, higher targets like the 127.2% Fibonacci extension at 212.75 and 161.8% extension at 214.38 may become relevant. Meanwhile, the Japanese Yen shows a percentage change that places it as the strongest against the US Dollar, despite its mild performance against other major currencies.<\/p>\n
We are seeing the Pound struggle against a tough resistance level around 211.60 against the Yen. This ceiling has held firm for the past two weeks, making it a critical point to watch. Derivative traders should note the indecision here, as a breakout or rejection is imminent.<\/p>\n
The underlying strength in the UK economy offers some support for the Pound. The final UK Manufacturing PMI for December 2025 confirmed expansion, and recent ONS data showed GDP growth in the final quarter of 2025 was a resilient 0.3%. This fundamental backdrop might encourage traders to buy call options, betting on an eventual break above resistance.<\/p>\n
However, a bearish divergence on the intraday charts warns us of a potential reversal. This technical signal suggests the upward momentum is fading, presenting an opportunity for those looking at put options. Looking back at the Bank of England’s December 2025 meeting, we saw a growing debate about when to start easing policy, which could cap the Pound’s strength.<\/p>\n
Given the tight range between support near 210.05 and resistance at 211.60, we could see a sharp move in the coming weeks. We remember the significant volatility spikes in this pair, like the one in the autumn of 2022, which shows how quickly it can move once a key level breaks. This suggests strategies like a long straddle could be effective, profiting from a large price swing in either direction.<\/p>\n
We must also consider that the Yen’s current weakness is partly due to holiday-thinned markets. As Japanese traders return, we might see the Yen strengthen, especially as core inflation in late 2025 remained stubbornly above the Bank of Japan’s 2% target. This potential for renewed Yen strength could easily push the pair down from its current highs.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBP\/JPY steadies below resistance at 211.60; UK PMI upbeat, Yen strong versus USD amid light trading.<\/p>\n","protected":false},"author":62,"featured_media":17035,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/38120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=38120"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/38120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17035"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=38120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=38120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=38120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}