GBP/JPY: Upbeat UK Data Fuels Bullish Momentum - Trade Alert

The GBP/JPY  gained slightly after upbeat UK jobs data. It hit an intraday high of 191.95 and is currently trading around 1911.75. Intraday trend is bullish as long as support 188 holds.

The UK jobs market in December 2024 was a combination of stability and growth, the latest ONS figures indicate. The unemployment rate remained at 4.4%, defying forecasts.

Employment received a big boost, with 107,000 new positions created, much more than forecast. Average weekly pay also increased, rising by 6.0% year on year.

Payrolls also recorded a positive turn, with a rise of 21,000 in January 2025, recovering from December losses. On the whole, the report indicates some strength in the UK labor market, with employment and wages recording positive trends.

Technical Analysis of GBP/JPY

The GBP/JPY pair is trading above  34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming a bullish trend. Immediate resistance is at 192; a breach above this level targets of 193/193.36/194/195/195.60/196.25/197. Downside support is at 191 with additional levels at 190.35/189.80/189/188.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

 It is recommended to buy on dips around 191.45-50 with a stop-loss at 190.35 for a TP of 193.