The GBP/JPY cross held on to its weaker tone around mid-146.00s and moved little following the release of UK employment details.
The cross failed to capitalize on its recent positive momentum and once again failed near the 147.00 round figure mark, snapping four consecutive days of losing streak. A modest pickup in demand for the Japanese Yen turned out to be one of the key factors prompting some long-unwinding trade, which coupled with a subdued GBP price action further collaborated to the pair’s early dip to an intraday low level of 146.32.
Meanwhile, the British Pound found some support at lower levels after the latest UK jobs report showed that the UK average earnings including bonuses rose 3.5%, while earnings excluding bonuses held steady at 3.4% for the three months to February. Adding to this, the UK unemployment rate also remained unchanged at 3.9% during the reported period, though the positive readings were partly offset by an unexpected jump in the UK claimant count.
This coupled with the fact that cross-party talks between the UK PM Theresa May and opposition leader Corbyn, aimed to break the Brexit deadlock, are yet to produce any positive results might hold investors from placing any aggressive GBP bullish bets and further collaborated towards capping any meaningful up-move, at least for the time being.
Technical levels to watch
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