GBP/JPY Surges Despite UK Jobs Woes: Bullish Momentum Holds Above Key Support

GBPJPY is consolidating amid mixed UK jobs data. The intraday trend is bullish as long as the support at 199.55 holds. Currently, trading around 200.229, the pair reached an intraday high of 200.224.

The UK labor market is under growing strain as the claimant count rose by 20.3k in August 2025 to 1.686 million, counteracting July's 6.2k drop and pointing to increasing unemployment pressures. Wage increases slowed, with usual pay up 4.8% year-on-year and total pay at 4.7%, reflecting declining inflationary pressures but continuous economic instability. Employment weakened further as payrolled employees declined 142,000 yearly and 6,000 monthly and job vacancies decreased for the 38th straight month by 10,000. to 728,000, highlighting a continuing hiring decline and more general labour market problems.

The pair is trading above 55 and  200 EMA  and  365 EMA (long-term) on the 4-hour chart, confirming a bullish trend.  Any violation below 199.50 indicates the intraday trend is weak. A dip to 199.20/198.75 /198/197.85/197.25/ 196.70/196.20/195 is possible.  Immediate resistance is at 200.75; a breach above this level targets 202/203.

Market Indicators ( 4-hour chart)

CCI (50)- Bullish

Directional movement index -  Neutral

Trading Strategy: Buy

 
 It is good to buy on dips around 199.88-90  with SL around 199.35 for a TP of 202/203.