GBPJPY Chart Technical Outlook bounces on UK jobs report, bulls face strong resistance at 189.79
The world is worried about Chinese and US growth, and that boosts the safe-haven Yen. The Japanese currency also gets a boost from the Bank of Japan’s contemplation of rate hikes, when the Fed and the rest of the world are cutting rates. However, the strength of the yen has its limits.
The UK reported fewer jobless claims than expected, and also a drop in the unemployment rate. That allows GBP/JPY to bounce, and I expect further gains. Resistance is at 189.79, which is where the 50 and 200 4h-SMAs hit the price. It is followed by 191.26. It has a strong support of 186.50, which is followed by 182.88.
