• GBP/JPY edges higher as easing JGB yields put the Yen under pressure.
• Technical bias remains bullish with the pair holding well above key moving averages.
• Momentum indicators stay constructive, signalling room for additional upside.

The British Pound (GBP) gains traction against the Japanese Yen (JPY) on Tuesday as easing Japanese Government Bond (JGB) yields weigh on the Yen and support a rebound in GBP/JPY after three straight days of losses.

At the time of writing, GBP/JPY is trading around 206.12 as bulls repeatedly defend the 205.00 psychological level, keeping downside pressure contained.

From a technical perspective, GBP/JPY has remained in a strong uptrend since bottoming in April near 184.38, with the pair rallying roughly 11.7% from that swing low. The broader structure continues to show a sequence of higher highs and higher lows, and prices remain well above key moving averages, further reinforcing the prevailing bullish bias.

On the upside, the 206.00-207.20 zone stands out as immediate resistance. A sustained break above this band could pave the way for another leg higher toward a fresh year-to-date high around 208.00, with room for further gains if bullish momentum strengthens.

On the downside, the 204.00–205.00 region acts as the first meaningful support area, closely aligning with the 21-day Simple Moving Average (SMA) and marking the zone buyers have repeatedly defended.

A decisive break below this support would shift the short-term bias to bearish and expose stronger support near the psychological 200.00 handle, which coincides with the 100-day SMA.

Momentum indicators remain constructive. The Relative Strength Index (RSI) holds near 59, comfortably in bullish territory. The Moving Average Convergence Divergence (MACD) line holds above the signal line, with both hovering near the zero level. The histogram remains positive but is beginning to contract, indicating that while upside momentum is moderating, the overall bias still leans in favour of the bulls.