GBP/JPY Surges on Strong UK Jobs Data: Buy the Dips?

 GBP/JPY gained momentum after upbeat UK jobs data.  It hits an intraday high of 189.20 and is currently trading around 189.15. Intraday trend is bullish  as long as support 186.50 holds.

In March 2025, the UK labor market was still strong with a firm unemployment rate of 4.4% and a huge increase in employment of 206,000, and wage growth, though still strong, began to show some moderation, with average weekly earnings rising at 5.6% and non-bonus earnings at 5.0%; however, payroll employment fell unexpectedly by 78,000, which may reflect short-term volatility amidst otherwise firm labor conditions.

The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and below 200 EMA (long term on the 4-hour chart, confirms a mixed trend.  Immediate resistance is at 190,a breach above this level targets of 191/191.75/192.30/193. Downside support is at 188 with additional levels a 187.70/187.10/186.45.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy: Buy on dips

 It Is good to buy on dips around 188  with SL around 186.50 for a TP of 192.