GBP/JPY continued to rise on Tuesday, reaching the 197.00 handle as the market continued to sell off the Japanese Yen. UK labor figures showed some weakness, but the impact was not as severe as expected. The Bank of Japan is believed to have intervened in the global markets recently, overspending on financial operations. However, the Yen’s recovery was short-lived as GBP/JPY climbed back to 197.00 from a recent low of 191.50.
In the UK, the ILO Unemployment Rate rose to 4.3% in the three months ending in March, in line with expectations. Average UK Earnings Including Bonuses increased by 5.7% compared to the previous year. Despite a decrease in net employment change by -177K jobs, the Pound briefly weakened.
Investors are now looking ahead to Japan’s GDP growth data for the first quarter, which is expected to contract by -0.4%. GBP/JPY technical outlook shows the pair trading above the 200-hour Exponential Moving Average, with Sterling gaining against the Yen. Although the pair is still down 1.8% from its peak in late April, it has recovered to the 197.00 handle.
Overall, GBP/JPY continues to show strength in the market, with investors closely monitoring Japanese GDP data for further insights into the currency pair’s future movement.