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GBP/JPY has resumed its upward trend after breaking above the 217.99 level, with intraday bias now favoring higher prices. The current rally is expected to target the 220.90 Fibonacci projection level as the next key resistance. If the pair retreats below 217.99, the intraday bias may shift to neutral. In the broader context, the long-term uptrend remains intact, with the 61.8% Fibonacci retracement level as the ultimate target. This technical analysis highlights critical support/resistance levels and Fibonacci projections as key tools for traders to monitor price action.
For forex traders, GBP/JPY's movement above key Fibonacci levels signals potential for further gains, especially in a low-volatility environment where carry trades (GBP as high-yield currency) remain attractive. The pair's performance is closely tied to the Bank of England and Bank of Japan's monetary policies, though no immediate policy changes are anticipated. Traders should watch for breakouts above 220.90 or breakdowns below 217.99 to confirm trend continuation or reversal.
MENA investors with exposure to GBP/JPY should focus on the 217.99-220.90 range as a decisive zone. A sustained move above 220.90 could open the path to higher Fibonacci targets, while a drop below 217.99 might trigger short-term consolidation. Key events to monitor include UK inflation data and BoE rate decisions, which could influence GBP's direction against the Yen.
