GBP/JPY Dips: Weak UK Jobs Data and Rate Cuts Weigh on Market Confidence

The GBP/JPY currency pair pared some of its gains after weak UK jobs data. 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.

In October 2024, the number of people in the UK claiming unemployment benefits rose by 26.7 thousand, following a smaller increase of 10.1 thousand in September. This was less than the expected rise of 30.5 thousand for October. The claimant count shows how many people are receiving unemployment help, indicating ongoing difficulties in the job market. The unemployment rate also increased to 4.3% in the three months before September 2024, up from 4.0% in August. This situation points to challenges in the labor market that need careful attention and support.

Technical Overview:

The GBP/JPY is trading above both short-term and long-term moving averages, which suggests a downward trend. The immediate resistance level is at 197.50. 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 197.35-40 with SL around 198.10 and aim for a target price of 197.40.