GBP/JPY Price Outlook – Trade SetupBritish Pound / Japanese YenFOREXCOM:GBPJPYATFX_Global📊 Technical Structure GBPJPY On the 60-minute (60M) chart dated March 17, 2026, GBP/JPY is exhibiting a corrective bounce, ticking higher to trade near the 212.00 psychological level. The pair has established a clear Resistance Zone between 212.00 – 212.28, which is currently being reinforced by a significant descending trendline acting as a technical ceiling. On the downside, a firm horizontal Support Zone is identified between 210.66 – 210.96. The current price action shows a "rejection from the top" sentiment as the pair struggles to find acceptance above the trendline resistance, suggesting that the broader bearish bias remains intact ahead of major central bank decisions. Short-term bias: Bearish while below 212.28. Key Resistance: 212.00 – 212.28. Key Support: 210.66 – 210.96. 🎯 Trade Setup (Sell-the-Rally Scenario) Entry Zone: 212.00 – 212.28 (Selling near the descending trendline and resistance zone). Stop Loss: 212.34 (Placed strictly above the recent swing high and resistance cluster). Take Profit 1: 210.96 Take Profit 2: 210.66 Risk–Reward Ratio: Approx. 1:3.05. 📌 Invalidation: A decisive hourly candle close above 212.34 would invalidate the bearish setup, signaling a breakout from the descending structure and a potential move toward 213.00. 🌐 Macro Background The GBP/JPY pair is currently being driven by a combination of JPY underperformance and anticipation of high-impact monetary policy events: BoJ Policy Stance: Governor Kazuo Ueda remains confident in moderate price and wage growth, with underlying inflation gradually accelerating toward the 2% target. The Bank of Japan (BoJ) is widely expected to hold interest rates steady at 0.75% this Thursday. BoE Expectations: The Bank of England (BoE) is also projected to leave interest rates unchanged at 3.75% on Thursday. Surging oil prices due to Middle East supply disruptions have de-anchored global inflation expectations, prompting a cautious approach from policymakers. UK Labor Market: Investors are awaiting UK labor market data for January, with the unemployment rate expected to hold steady at 5.2% while wage growth is projected to cool slightly to 4%. 🔑 Key Technical Levels Resistance Zone: 212.00 – 212.28. Support Zone: 210.66 – 210.96. 📌 Trade Summary GBP/JPY is testing a critical technical ceiling defined by horizontal resistance and a descending trendline. While the JPY remains weak, the lack of follow-through buying above 212.00 favors bearish traders ahead of the BoJ and BoE meetings. Preferred strategy: Seek short opportunities on minor intraday rallies toward the 212.00 area, targeting the 210.96 support floor. ⚠️ Disclaimer This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.