The British Pound tests resistance: A forecast of the pound above 212.20 opens new possibilities

NeverVoteOnDAO · 2026-01-20T14:14:38+00:00

GBP/JPY reaches multi-year highs as yen weakness persists despite Bank of Japan's tightening signals. The British pound strengthens, driven by optimism. Technical indicators show potential for further growth if it holds above key support levels.

NeverVoteOnDAO

2026-01-20 14:14:38

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Para GBP/JPY reaches multi-year highs – yen weakness persists

During Asian market hours, the royal currency reached a multi-year high at 212.15 against the Japanese yen. Although BoJ President Kazuo Ueda signaled on Monday his readiness for further monetary policy tightening, the yen remains the weak link in the currency basket. Ueda suggested that if the economy and inflation develop according to the bank’s scenario, additional rate hikes will be implemented. The priority remains supporting sustainable growth and price stability through gradual normalization of monetary tools.

Investors’ attention has turned to Friday’s report on household expenditures for November. Consensus indicates moderation – a 1% decline would be a significantly smaller deterioration than October’s 3% recession in this category.

Pound strengthens amid improving sentiment

The British pound appreciated against most major currencies, supported by renewed optimism following the easing of tensions between America and Venezuela. In the coming days, without significant announcements from the UK economy, currency movement will be dominated by the interpretation of the future trajectory of the Bank of England.

Technical analysis of GBP/JPY: Rapid upward trend, but saturation ahead

The current price on the daily chart is 211.92. The 20-day exponential moving average is trending upward, providing technical support at 210.04. As long as the rate stays above this level, the growth potential remains active.

The RSI (14) indicator is at 70.84 – a clear momentum signal, but it also warns of the possibility of overextension. Sensitivity to pullback increases in this region.

Technical scenarios:

If the pair maintains above the rising 20-day EMA, the upward target could reach the 215.00 zone
Closing below 210.04 could trigger a correction, with the next support around the December low (December 19) at 208.00

The pound’s near-term forecast depends on stabilization above the indicated resistance zones.

(Analysis developed with the support of artificial intelligence tools)

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