GBP/JPY Holds Above One-Week Low as Intervention Risks Cap Gains
The British pound staged a modest recovery against the Japanese yen on Monday, holding above a one-week low near 213.30, but potential intervention risks are limiting further upside.
The GBP/JPY cross edged higher during the first half of the European session on Monday, recovering from a one-week low of around 213.30. The modest intraday gains come after a period of selling pressure, but the pair remains capped by persistent intervention risks from Japanese authorities.
Traders are cautious as verbal warnings from Japanese officials continue to deter aggressive yen selling. Any sharp rally in the pair could prompt direct intervention, similar to previous episodes. This keeps the upside limited despite the pound's relative strength.
The near-term outlook remains neutral to slightly bearish, with the pair consolidating above the 213.00 handle. A break below that level could open the door to further losses, while resistance is seen near 214.50 and 215.00.
Source: FXStreet Forex News