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GBP/JPY experienced a modest rebound on Friday after facing selling pressure earlier in the day. The pair had been under pressure amid suspected intervention by Japanese authorities in Tokyo for the second consecutive day to stabilize the Japanese Yen (JPY). The 100-day Simple Moving Average (SMA) has become a critical support level for buyers, though weakening momentum suggests potential volatility ahead.
For traders, the 100-day SMA is a key technical indicator to monitor. If buyers fail to defend this level, GBP/JPY could face renewed downward pressure. Conversely, a sustained rebound above the SMA might signal a short-term reversal in sentiment. Central bank interventions, particularly by the Bank of Japan, remain a wildcard in forex markets, adding uncertainty to the pair's trajectory.
Looking ahead, market participants should watch for follow-through buying or selling action around the 100-day SMA. Broader economic data from the UK and Japan, along with geopolitical risks, could also influence the pair. Traders are advised to remain cautious and consider adjusting stop-loss levels based on the SMA's performance.
