FxWirePro- GBPJPY Trade Idea

The GBP/JPY  pared most of its gains on the strong yen. It hit a high of 194.90 yesterday and is currently trading around 192.57. Intraday trend is bullish as long as support 191.80 holds.

UK labor market statistics released on March 20, 2025, indicate a mixed economic scenario. The claimant count increased by 22,000 in February 2025, reaching 1.775 million. The average earnings index for the three months ending in February 2025 rose by 6.0% year-on-year, surpassing the previous month's 5.5% growth. Meanwhile, the unemployment rate remained stable at 4.4%. These figures suggest a complex economic environment characterized by rising claimant counts and wage growth alongside a steady unemployment rate

Markets eye BOE monetary policy for further direction.

Technical Analysis Points to Further Downside 

The GBP/JPY pair is trading below above  34 and 55 EMA (Short-term) and 200 EMA (long term on the 4-hour chart, confirming a mixed trend. Immediate resistance is at 193.20,a breach above this level targets 194/194.90/ 196/196.80/198. Downside support is at 192.45 with additional levels at 191.70/191/189.80/188.75/188/187.25/186/185.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

 It is recommended to sell on rallies around 194-194.10 with a stop-loss at 195 for a TP of 190.80.