GBP/JPY Price Forecast: Pound steadies at long-term highs above 212.20

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GBP/JPY hits fresh highs nearing 212.50 amid generalised Yen weakness.
JPY tumbles across the board as PM Takaichi mulls snap elections.
Technical indicators point to further appreciation towards 212.85 or 213.34.

The Sterling stands comfortably at long-term highs above 212.10 on Monday, supported by a weaker Japanese Yen following news reporting that Prime Minister Sanae Takaichi might be considering calling snap elections in February.

According to a Kyodo News report, Takaichi would have told an official of the ruling Liberal Democratic Party (LDP) that she is considering dissolving the House of Representatives on January 23 and calling a snap election for February 8 or 15.

The news took markets by surprise, triggering fresh concerns about the consequences of another period of political uncertainty, which has sent the Yen dropping across the board.

Technical Analysis: Next bullish targets are 212.85 and 213.34

GBP/JPY trades at 212.29. moving within an ascending channel from early November lows. Technical indicators are pointing higher. The 4-Hour Relative Strength Index (RSI) at 66 signals a firm bullish tone without overbought conditions. The Moving Average Convergence Divergence (MACD) line stands above the Signal line, and the histogram widens within positive territory, suggesting strengthening momentum.

If the pair manages to consolidate above the previous long-term high, at 212.10, bulls will aim for the 127.2% Fibonacci extension of the last two weeks' trading range, at 212.85. The 161.8% extension of the mentioned cycle is at 213.34.

A bearish reversal below the mentioned 210 brings the trendline resistance, now at 211.20, into focus. Further down, key support is at the late-December lows, between 210.05 and 210.25.

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

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 US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.50%	-0.43%	-0.08%	-0.27%	-0.33%	-0.44%	-0.60%
EUR	0.50%		0.07%	0.39%	0.23%	0.18%	0.06%	-0.09%
GBP	0.43%	-0.07%		0.34%	0.16%	0.11%	-0.02%	-0.17%
JPY	0.08%	-0.39%	-0.34%		-0.18%	-0.24%	-0.34%	-0.49%
CAD	0.27%	-0.23%	-0.16%	0.18%		-0.06%	-0.17%	-0.32%
AUD	0.33%	-0.18%	-0.11%	0.24%	0.06%		-0.12%	-0.30%
NZD	0.44%	-0.06%	0.02%	0.34%	0.17%	0.12%		-0.15%
CHF	0.60%	0.09%	0.17%	0.49%	0.32%	0.30%	0.15%

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).