GBP/JPY rose about 0.29% on Tuesday, recovering as oversold conditions eased even though broader risk appetite deteriorated. Geopolitical developments pushed global bond yields higher on inflation fears, yet the cross traded at 209.02 at the time of writing after rebounding from an intraday low of 208.25.
Downtrend And Technical Overview
On the daily chart, the pair remains in a downtrend following two FX market interventions. The move drove GBP/JPY down from yearly highs near 220.00 to current levels, a fall of more than 1,300 pips. RSI is still bearish, but momentum has firmed as the indicator moved from below 30 to almost 34. A break above the 3 August daily low at 209.58 would bring 210.00 into view, while a trend shift would require a move over the 200-day SMA at 213.22, which would then point towards 215.00.
