The GBP/JPY currency pair surged after upbeat UK jobs data. It is currently trading at approximately 195.64. Notably, the Potential Reversal Zone (PRZ) is set at 200.20, indicating levels where traders may anticipate a potential price reversal.
UK Labor Market Shows Strength: Unemployment Steady and Wages Rising
Recent UK labor market data shows that the ILO unemployment rate stayed at 4.3% for the three months leading up to October 2024, meeting expectations and showing stability. Wage inflation has increased to 5.2%, up from 4.9% the previous month, indicating higher earnings for workers. In October, employment rose by 173,000, much more than the expected increase of 2,000, signaling strong job growth. This data suggests that the labor market is strong, with more demand for workers and rising wages. Overall, these trends may impact decisions made by the Bank of England regarding economic policies
Technical Analysis: GBP/JPY on the Upswing with Key Resistance at 195.90
From a technical standpoint, the GBP/JPY is trading above short-term and long-term moving averages, a clear indication of a prevailing uptrend. The immediate resistance level stands at 195.90. A breakout above this threshold could lead to further gains toward levels of 197.79. On the downside, support is positioned at 193.70 with additional levels of interest at 194.80/ 194/193.70/192.50/191.80/191.40/190.60/190/189.35, 188.50, 186.79, and 183 should the price fall further.
Analysis of key indicators such as the Commodity Channel Index (CCI)- Bullish and Average Directional Index (ADX)- Bullish
Considering the current technical and fundamental landscape, traders may want to adopt a strategy that involves buying on dips around the 195.58-60 mark, establishing a stop-loss (SL) around 195 . The anticipated target prices for this approach could be 197.
