GBP/JPY Price Forecast: Pound extends gains, nearing 210.00 amid Yen weakness

GBP/JPY appreciates for the second consecutive day and nears 210.00.
The Yen remains on its back foot with concerns about global government debt growing.
Weak Japanese Household Spending data highlighted the negative impact of inflation on Japan's domestic demand.

The British Pound (GBP) extends gains for the second consecutive day on Monday, as concerns about the high Japanese public debt and rising Oil prices keep the Japanese Yen (JPY) on its back foot. The GBP/JPY pair is trading a few pips below 210.00, after bouncing from levels near 208.00 last week, with bulls looking at the top of the monthly trading range, at the 211.00 area.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The Yen turned lower across the board on Friday as Japanese data revealed that Household Spending declined for the ninth consecutive month in August, adding to evidence of the negative impact of higher prices on Japan’s domestic demand.

Beyond that, the global government bond crisis is fully affecting the Yen. Japan’s public debt is one of the largest among the world’s major economies, and the government’s plans to support economic growth threaten to further boost spending. Prime Minister Sanae Takaichi came out last week to pledge a “responsive and proactive” fiscal policy but, so far, it has failed to restore market confidence.

Technical Analysis: Pound bulls are looking at the 211.00 area

GBP/JPY trades at 209.91, holding a constructive bullish bias, with key resistance at the top of the monthly range above 211.00. Momentum indicators on the 4-hour chart endorse the positive trend, as the Relative Strength Index (14) advances past the 60 level and the Moving Average Convergence Divergence (MACD) remains moderately positive.

Bulls might find some resistance at the September 25 and October 6 and 7 highs in the area of 210.20 ahead of the mentioned range top; between the September 18 high, at 211.28, and the September 4 highs around 211.80. A break above these levels would confirm a double bottom near 207.00, which is a common figure for trend shifts.

To the downside, initial support is seen at Friday's lows of 209.00, with deeper structural demand layers clustered at the early October lows near 207.60 and the mentioned 207.00 area.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.15%	-0.01%	0.19%	0.04%	0.19%	0.23%	0.32%
EUR	-0.15%		-0.18%	0.02%	-0.12%	0.01%	0.14%	0.15%
GBP	0.01%	0.18%		0.21%	0.04%	0.19%	0.30%	0.33%
JPY	-0.19%	-0.02%	-0.21%		-0.17%	-0.02%	0.07%	0.11%
CAD	-0.04%	0.12%	-0.04%	0.17%		0.15%	0.20%	0.27%
AUD	-0.19%	-0.01%	-0.19%	0.02%	-0.15%		0.11%	0.12%
NZD	-0.23%	-0.14%	-0.30%	-0.07%	-0.20%	-0.11%		0.03%
CHF	-0.32%	-0.15%	-0.33%	-0.11%	-0.27%	-0.12%	-0.03%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

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