GBP/JPY Finds Good Support ahead of 157.50
Following the UK jobs report release, the GBP/JPY cross stalled its downslide near 157.50 levels and re-attempted recovery back onto 158 handle.
GBP/JPY: Upside capped by negative European equities
Currently, GBP/JPY trades +0.24% to 158.20, struggling to take-out
strong offers placed near 158.30 region. The cross in the GBP/JPY takes
on the recovery mode in the mid-European session, largely backed by
renewed bids seen in the cable, as markets cheer upbeat UK jobs reports
in a delayed reaction. The UK’s unemployment rate stayed unchanged at
5.1% in March, as expected, with jobless claims falling 2,400 in April.
Moreover, the persistent bullish momentum seen in the USD/JPY pair on
the back of broad based US dollar strength, also aids the recovery in
the GBP/JPY cross. Moving on, markets now await the FOMC minutes for
further USD moves, which will have significant impact on both GBP/USD
and USD/JPY.
GBP/JPY Levels to consider
The pair has an immediate resistance at 159 (round number), above which
159.50 (post-BOJ highs) would be tested. On the flip side, support is
seen at 157.66/50 (50-DMA/ psychological levels) below that at 157/
156.95 (round number/ 5-DMA).
