GBP/JPY Returns To 200.00 Level After UK Jobs Data Released


Opening trade at the start of the European session this afternoon, investors were presented with a report of UK employment data for April.

Looking at the report, the 3-month average income index was positive, rising to 5.9%, beating forecasts to remain at 5.7%.

Meanwhile, the unemployment rate increased to 4.4% compared to expectations that did not change at the level of 4.3% as read in the previous March.

Meanwhile, the number of unemployment benefit claims in April increased sharply by 50,400 compared to the previous month's reading of 8,900.

The figure also fell far short of forecasts for an increase of just 10,200, which could spark concerns for the UK's labor sector.

The Pound dropped slightly at the opening of the European session after the data was published but the movement was not very significant.

If observed on the chart of the GBP/JPY currency pair, the price increase that has been displayed in the Asian session has started to slow down.

At first the price increase was seen to successfully pass the 200.00 barrier before reaching a level around 200.400.

However, after the data was published, the price was pushed back closer to the 200.00 level.

If pressure builds, the price could drop back below the 200.00 level before testing the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart.

If it still breaks down, the risk of a price fall can be expected up to last week's support zone around 197,400.

However, if the price manages to make a comeback, the resistance zone at 200.700 is critical to test.

This zone, which the price reached at the end of May, is the highest price record since 2008.