GBP/JPY hits weekly lows below 212.00 after rejection at 213.30 on Thursday.

The Yen rallies following bold intervention warnings by Japanese authorities.

The pair is testing the ascending trendline support from early November lows.

The Yen is outperforming most of its peers in an otherwise quiet session on Friday, as Japanese authorities ramped up their threats of intervention. The GBP/JPY is extending its reversal from long-term highs above 214.00 to test levels below the 212.00 line at the time of writing.
comments

The Japanese Finance Minister, Satsuki Katayama, affirmed in a press conference on Friday that she would not “rule out any options” to defend the Japanese currency. Katayama also recalled that the joint statement with the US in September was “extremely significant and included language on intervention,” hinting at a concerted action with US economic authorities.

Technical analysis: Testing the ascending trendline near 212.00

The 4-hour chart shows the GBP/JPY trading right above 212.00, testing the support area in the confluence of the late December highs, and the ascending trendline support from the November lows in the area between 211.60 and 212.00.

The broader trend remains bullish, but technical indicators hint at a fading momentum. The Moving Average Convergence Divergence (MACD) remains below zero, reflecting a moderate bearish pressure. The Relative Strength Index (RSI) sits near 42in neutral-to-bearish territory.

A confirmation below the mentioned 211.60 level would put the bullish trend into question, and increase pressure towards 210.00, where bears were capped on December 24 and 31 and January 8. To the upside, Thursday's high, near 213.30 are closing the path to the long-term highs, at 214 30 hit earlier in the week.

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