The GBP/JPY gained sharply due to board-based Yen weakness. It hit an intraday high of 194.27 and is currently trading around 192.26. The intraday trend is bullish as long as support 191.80 holds.
Mideast Tensions Rise as Ceasefire Collapses
Following the collapse of ceasefire negotiations, Israel resumed its campaign against Hamas, launching large-scale airstrikes across Gaza on March 18, 2025. The surge marks nearly two months of relative calm since January 19's ceasefire. Fighting reignited after Hamas rejected American offers of a longer ceasefire and the release of more hostages, prompting Israel to attack Hamas. The air raids have caused numerous casualties, including children, and raised concerns regarding the already dire humanitarian crisis due to scarce basic supplies. The international community has been concerned with the mediators to broker a new ceasefire agreement, highlighting the fragility of peace efforts and challenges in stopping the war
Technical Analysis Points to Further Downside
The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bullish trend. Immediate resistance is at 194.60,a breach above this level targets 195/196. Downside support is at 193.20 with additional levels at 191.70/191/189.80/188.75/188/187.25/186/185.
Market Indicators
CCI (50)- Bullish
Directional movement index - Bullish
It is recommended to buy on dips around 192.95 with a stop-loss at 192 for a TP of 195.
