FxWirePro- GBPJPY Trade Idea

The GBP/JPY trades higher despite weak UK jobs data. It hits a low of 189.33 and is currently trading around 191.06. Intraday trend is bearish as long as resistance 192 holds.

In November 2024, the UK labor market reported several significant trends. The unemployment rate remained steady at 4.3%, indicating that the labor market is still stable. However, more people were reported to be working, at 35,000, which exceeded the forecast of 33,000 but was very much lower than the 173,000 expansion in the earlier period. Average hourly earnings for a standard week rose 5.6%, as the consensus had predicted, and earnings before bonuses increased 5.6%. But payrolls fell by 47,000 in December; that is a significant decline, far larger than the previous month's decline. Long-term job security aside, though employment is growing and wages are increasing, recent drops in payrolls are a problem.

Technical Analysis of GBP/JPY

The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming an overall downtrend. Immediate resistance is at 19.20; a breach above this level targets of 191.60/192/193/193.51/194.52/195/195.60/196.25/197. Downside support is at 189.40 with additional levels at 188.70/188.

Market Indicators

CCI (50)- Bearish

Directional movement index - Neutral

 It is recommended to sell on rallies around 191.15-20 with a stop-loss at 192 for a TP of 188.