GBP/JPY: Bulls Hold, But UK Jobs Data Looms

The GBP/JPY took support near 55- 8H EMA and showed a minor pullback on board-based yen weakness. It hit an intraday high of  199.11 and is currently trading around 199.05.  Intraday trend is bullish as long as support 197.85 holds.

Data on the UK labor market released on July 17, 2025, show a mixed picture: the Average Earnings Index (3m/y) indicates a modest wage rise of 5. 0%, slightly below the prior 5. 3% and a consensus estimate of 4. 9%. Far above the projected 17,900, the Claimant Count Change indicated a major increase of 33,100 in June 2025, suggesting a possible softening in the labor market. Although wage growth is still above historical norms, it has slowed from its peak; the surprise increase in jobless claims worries about the resilience of the UK's economy and might affect future monetary policy choices.

‘The GBP/JPY pair is trading above  55 and above 200 EMA (Short-term) and 365 EMA (long-term) on the 8 Hour chart, confirming a bullish trend.  Any violation below 198.65 indicates the intraday trend is weak. A dip to 198/197.70/196.70/196.25/195.25/194/193.70 is possible.  Immediate resistance is at 200 a breach above this level targets of 200/202/204.

Market Indicators (8 hour chart)

CCI (50)- Bullish

Directional movement index - neutral

Trading Strategy:  Buy

 
 It Is good to buy on dips around 198.70-75 with SL around 197.70  for a TP of 202.