The GBP/JPY currency pair is staying the same because the weakness of the yen is balancing out the falling value of the British pound. It dropped to a low of 196.88 at the time of writing and is currently trading around 197.08. The Potential Reversal Zone (PRZ) is set at 200.20.
The pound sterling was one of the worst performers yesterday after mixed UK jobs data.
The unemployment rate in the UK went up to 4.3% for the three months ending in September, rising from 4.0% and higher than the expected 4.1%. This suggests a weaker job market, which has made investors less confident in the currency.
Although average earnings increased more than expected, with earnings (not including bonuses) rising by 4.8%, the overall mood was affected by slow job growth. Only 219,000 new jobs were added, down from 373,000 before, showing less demand for workers.
Technical Overview:
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a downward trend. The immediate resistance level is at 198. If the price breaks this level, it could rise toward 198.10/ 198.50,199.60/ or even 200.20. Support is at 196.70, and if that fails, the price could drop to 195.80 or 195.37.
Indicator Analysis:
The CCI and ADX indicators suggest a bearish trend right now.
Trading Recommendation:
Consider selling on rallies around 197.48-50 with SL around 198.10 and aim for a target price of 197.40.
