untitled design

GBP/JPY continues to rise despite UK jobs data, tests 197.00

  • GBP/JPY rises as markets exit “intervention” territory.
  • UK jobs figures worsened, but not as much as expected.
  • Japanese GDP growth will be known on Thursday.

The GBP/JPY pair rose further on Tuesday, reaching the 197.00 level, while the currency market continues to sell off Japanese yen (JPY) overall. UK jobs numbers faltered on Tuesday, but investors dodged the worst after jobless claims rose less than expected and wages grew at a healthy pace.

The Bank of Japan (BoJ) is widely believed to have intervened in global markets on two separate occasions in recent weeks, after Japanese central bank activity reports revealed that the BoJ overextended itself in various financial operations in about nine billion yen. However, the yen's aggressive rally is proving short-lived. The GBP/JPY pair reached the 197.00 area again, recovering from the recent low near 191.50.

The ILO unemployment rate in the United Kingdom rose to 4.3% in the three months ending in March, matching market forecasts and rising from 4.2% in the previous period. Average earnings in the UK, including premiums, rose by 5.7% in the three months to March, compared with the same period a year earlier. The net change in employment in the UK during the quarter to March fell, with a loss of -177,000 jobs compared to -157,000 in the previous period, briefly pushing the British Pound back.

Markets have broadly recovered on Tuesday, and yen pairs will be watching Japan's first-quarter GDP growth due early on Thursday. Japan's first quarter GDP is expected to contract -0.4% compared to the meager growth of 0.1% in the previous quarter.

GBP/JPY Technical Outlook

The pair continues to trade north of the 200 hourly EMA at 194.95 as the pound accelerates its gains against the Yen. The pair recovered to the 197.00 area for the first time since the beginning of the month, but the pair is still losing 1.8% from the multi-decade high reached at 200.60 in late April.

GBP/JPY hourly chart

GBP/JPY daily chart

GBP/JPY

Overview
Latest price today 196.98
Today Daily Change 0.79
Today Daily variation % 0.40
Today daily opening 196.19
Trends
daily SMA20 193.88
50 daily SMA 192.08
SMA100 daily 189.43
SMA200 Journal 186.59
Levels
Previous daily high 196.28
Previous daily low 194.74
Previous weekly high 195.34
Previous weekly low 191.73
Previous Monthly High 200.59
Previous monthly low 190
Daily Fibonacci 38.2 195.69
Fibonacci 61.8% daily 195.33
Daily Pivot Point S1 195.19
Daily Pivot Point S2 194.2
Daily Pivot Point S3 193.66
Daily Pivot Point R1 196.73
Daily Pivot Point R2 197.28
Daily Pivot Point R3 198.27

Source: Fx Street

You may also like

Analyst: Bitcoin miners are marking time
Top News
David

Analyst: Bitcoin miners are marking time

Glassnode analyst James Check, known under the nickname Checkmatey, doubted the capitulation of Bitcoin miners after the halving, although he

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular