GBP/JPY slides further below 130.00 mark, closer to multi-month lows post-UK jobs data

• GBP/JPY failed to capitalize on the early attempted recovery move.
• Tuesday’s mixed UK jobs data also did little to impress the GBP bulls.
• Fading safe-haven demand weighed on the JPY and might help limit losses.

The selling pressure around the British pound picked up pace in the last hour and dragged the G

BP/JPY cross further below the key 130.00 psychological mark, closer to Monday’s six-month lows.

The cross failed to capitalize on its attempted intraday recovery move, rather met with some fresh supply near the 131.20 region. The prevailing selling bias surrounding the sterling – amid the disappointment from the UK government’s controversial approach of fighting the coronavirus pandemic – was seen as one of the key factors that kept a lid on the early uptick.

The intraday pullback seemed rather unaffected by the mixed UK employment details for February. According to the report, the number of people claiming unemployment-related benefits came in at 17.3 during the reported month (21.4K expected) and average earnings including bonus rose by 3.1% as compared to 2.9% previous and 3.0% expected.

The positive readings, to a larger extent, was offset by an unexpected rise in the unemployment rate – to 3.9% from 3.8% previous – and a slight disappointment from average earnings excluding bonus, which edged lower to show a growth of 3.1% as compared to the previous month’s 3.2% and expected, which eventually did little to impress the GBP bulls.

Meanwhile, receding demand for perceived safe-haven currencies, including the Japanese yen amid a modest recovery in the global risk sentiment, might turn out to be the only factor that might help limit deeper losses, at least for the time being.

Technical levels to watch