GBP/JPY Forecast: Pound Bulls Struggle Against 200.30 Resistance

• Sterling buyers hit resistance at 200.30 before slipping back toward 199.45.
• The Yen weakened after Prime Minister Ishiba announced his resignation.
• Key support for GBP/JPY sits near the ascending trendline around 199.00.

The British Pound tried to extend gains against a softer Japanese Yen in early Monday trading but once again met heavy selling pressure at the 200.30 level. The rejection pushed the pair about 0.15% lower, pulling it back into the 199.00 range.

The Yen came under broad pressure following the surprise resignation of Prime Minister Ishiba. Markets are now weighing the possibility that former foreign minister Toshimitsu Motegi could take over leadership. Motegi’s backing of a dovish monetary stance raises doubts about the Bank of Japan’s tightening path, fueling further Yen weakness.

Technical Outlook: Trend Intact, But Resistance Holds

From a wider perspective, GBP/JPY continues to trend higher, maintaining its sequence of higher highs and higher lows from last week. However, the 200.30 barrier has become a critical ceiling for Sterling bulls:

• The level blocked rallies on August 13, August 18, September 2, and now again on September 8.
• A break above this zone would expose the next target at 200.95, the 127.2% Fibonacci retracement of the mid-August pullback.

On the downside, risks remain:

• An open gap near 199.20 could attract selling pressure, as gaps often close.
• Immediate support is seen at the 199.00 trendline, drawn from the September 2 low.
• A deeper drop would bring the September 5 low at 198.70 and the September 3 low at 198.35 into focus for bears.

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