UK Jobs Data Drags GBP/JPY Down From Triple Top

The GBP/JPY  formed a triple top around 196.50 and declined sharply after dismal UK jobs data. It hit an intraday low of 194.77 and is currently trading around 195.12.  Intraday trend is bearish as long as resistance 196.50  holds.  

. Its employment change was 89k, well above the forecast 50k, but not as high as before (112k). Despite this, May payrolls showed a decrease of 109k, which is more significant than the previous downgrade from -33k (reverted to -55.0). The average weekly earnings experienced a growth of +5.3%, which was slightly lower than the projected rate of 5.5% (and the previous rate at +5.6%). With weekly average earnings, the bonus-free pay also rose to +5.2%) and slightly above expectations of +5.3% (previously, it had increased to +1.5% but has now revised to (+5.5%).

The GBP/JPY pair is trading below 34 and 55 and above 200 EMA (Short-term) and 365 EMA (long-term on the 1-hour chart, confirming a mixed trend.  Any violation below 194.75 indicates the intraday trend is weak. A dip to 194.50/193.70/193/192.85/192/191.70/191 /190 is possible.  Immediate resistance is at 195.40, a breach above this level targets of 196.50/198/200. Any major uptrend is possible only above 196.50.

Market Indicators (1- hour)

CCI (50)- Bearish

Directional movement index - Neutral

Trading Strategy:  Sell on rallies

 It Is good to sell on rallies around  195.78-80 with SL around 196.50 for a TP of 192.