GBP/JPY broke through the ¥210 barrier and surged to ¥210.96. After moving above its 21-day moving average, the next target is seen as the 200-day moving average near ¥213.
From the end of last week into this week, GBP/JPY broke through the ¥210 psychological threshold and rose sharply. It reached ¥210.96 late on the 16th before extending its gains to ¥211.16 on the 19th.
On the fundamental side, the UK's August GDP showed modest growth, supporting expectations that the Bank of England will maintain high interest rates, while expectations for firmer UK CPI also provided a catalyst for buying. The pound has been favored as a destination for funds moving away from the euro, showing relative strength against EUR/JPY.
Technically, the pair moved above its 21-day moving average on the daily chart, turning ¥210 resistance into support. The 200-day moving average near ¥213 is expected to be the next major threshold, while a pullback below ¥209.30 would warrant caution regarding the trend.
This week's expected range is ¥209.50 to ¥213.10. Volatility could increase depending on the UK CPI result, making appropriate risk management necessary.