The GBP/JPY gained slightly as Donald Trump released more tariff letters. It hit an intraday high of 199.47 and is currently trading around 199.17. Intraday trend is bullish as long as support 197.70 holds.
Effective August 1, 2025, unless new trade agreements are completed, the United States has declared a fresh round of tariffs on imports from several countries, spanning 25% to 40%. This move targets trade imbalances and promotes closer reciprocal trade relations, therefore affecting both major trading partners and poorer countries. These measures, which the U. S. government sees as essential to address long-standing trade imbalances and safeguard local industries, are also cautioned that any retaliatory taxes will result in extra U. S. tariff hikes. Already generating much volatility in world financial markets, this escalation in trade policy is set to have broad repercussions for international commerce and economic connections.
The GBP/JPY pair is trading above 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 15-min chart, confirming a bullish trend. Any violation below 198.45 indicates the intraday trend is weak. A dip to 197.70/196.70/196.25/195.25/194/193.70 is possible. Immediate resistance is at 200, a breach above this level targets 202/204.
Market Indicators (15 min chart)
CCI (50)- Bullish
Directional movement index - neutral
Trading Strategy: Buy
It is good to buy above 200 with SL around 198.49 for a TP of 204/205.
