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DailyBubble News

GBP/JPY continues to battle 200.00 region with BoJ in the pipeline

GBP/JPY is currently trading around the 200.00 handle amidst turbulent market conditions. The recent disappointment in Japan’s GDP growth has raised concerns about the Bank of Japan’s monetary policy, with a rate call scheduled for Friday. On the other hand, UK labor data set to be released on Wednesday is expected to show an increase in unemployment claims.

The GBP/JPY pair is experiencing choppy intraday movements, with both currencies struggling due to weak economic data. Japan’s GDP contracted by -0.5% QoQ in Q1, making it challenging for the Bank of Japan to move away from its easy monetary policy stance. Investors are eagerly awaiting the BoJ’s rate decision on Friday.

In the UK, monthly Claimant Count Change figures for May are anticipated to rise to 10.2K from the previous 8.9K. The ILO Unemployment Rate is expected to remain at 4.3%, while the 3-month Employment Change through April is closely watched after a contraction of -177K in employed positions.

From a technical perspective, GBP/JPY is consolidating around the 200-hour EMA at 199.38 after bouncing back from June’s lows near 197.50. The pair is still below multi-decade highs above 200.60. Both hourly and daily charts show sideways movement, indicating a period of consolidation for the currency pair.

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