The GBP/JPY pair extends its rebound on Monday, recovering above the 203.00 level after finding support near 201.85 last Friday. The move comes as the Japanese Yen weakens amid growing political uncertainty in Japan, following the Komeito Party’s decision to exit the governing coalition due to disagreements with new LDP leader Sanae Takaichi.

From a technical perspective, the pair’s bounce from just below the 38.2% Fibonacci retracement level suggests easing bearish momentum. The 4-hour RSI has risen above the 50 mark, while the MACD is turning positive — both signaling growing bullish interest.

To confirm a trend reversal, however, bulls must break convincingly above the 203.50 resistance — a confluence zone formed by the descending trendline from last week’s highs and the October 10 peak. A clear break could open the path toward 204.55 and 205.20.

On the downside, immediate support lies at 201.85 (Friday’s low), followed by the 50% Fibonacci level at 201.35 and deeper support near 200.30, aligned with the 61.8% retracement and early October lows.

Bias: Mildly bullish while above 202.00
Resistance: 203.50, 204.55, 205.20
Support: 201.85, 201.35, 200.30