GBP/JPY Price Forecast: Bulls Target 217.00 as Rally Extends

GBP/JPY extends its rally, rebounding from a low of 215.04 during the day to hit a fresh 14-day high of 216.90, currently trading near 216.73. Buyers are eyeing the 217.00 round figure; a decisive break above could see the pair retest the year-to-date high touched in mid-July.

**Technical Outlook: Short-Term Momentum Bullish, but Resistance Looms Above**

Looking at moving averages, the MA5 through MA200 all sit within the 215.25–216.04 range, with the current price trading above all of them, indicating a bullish short-term trend. However, the RSI is flattening, and the pair showed signs of stalling near the 216.35 resistance zone, suggesting selling pressure is emerging above. Pivot point data shows the classic pivot at 216.01, with R1, R2, and R3 at 216.12, 216.26, and 216.37, respectively. The current price has broken above R3; if a pullback holds the 216.35–216.37 area, the bullish structure remains intact.

**Key Level: 217.00 Is the Watershed**

217.00 is not only a psychological round figure but also the final barrier to the mid-July year-to-date high. Market signals indicate that a decisive break above this level would open further upside; conversely, repeated failures to test it could lead to a pullback toward the 216.00–215.90 support zone. The MA50 at 215.91 overlaps with this support area, forming a short-term bull-bear dividing line.

**Background: Overall Yen Weakness Provides Support**

Although the yen has rebounded recently from its weakest level in 30 years, market expectations of Japanese fiscal expansion continue to weigh on the yen's medium-to-long-term performance. Jefferies expects the yen's rally to have further room to extend, but Kathy Jones, fixed income strategist at Schwab Center for Financial Research, noted that intervention "can only slow the trend," and the fundamental backdrop of long-term yen weakness remains unchanged. This implies that the scope for GBP/JPY pullbacks may be relatively limited, with bulls retaining a structural advantage.