GBP/JPY holds steady above mid-174.00s, eyes UK jobs data for a fresh impetus – Crypto News – Crypto News
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Shifted downwards in the near-term unless bulls reclaim 164.00 Shifted downwards in the near-term unless bulls reclaim 164.00

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GBP/JPY holds steady above mid-174.00s, eyes UK jobs data for a fresh impetus – Crypto News

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  • GBP/JPY attracts some buyers on Tuesday and stalls the overnight pullback from a multi-year top.
  • The BoE-BoJ policy divergence acts as a tailwind and supports prospects for further near-term gains.
  • Investors now look forward to the monthly UK employment details for some meaningful impetus.

The GBP/JPY cross edges higher during the Asian session on Tuesday and stalls the overnight retracement slide from its highest level since January 2016, albeit lacks follow-through. Spot prices remain below the 175.00 psychological mark as traders now look to the US monthly employment details for a fresh impetus.

The UK jobs report is expected to show that the number of people claiming unemployment-related benefits fell by 9.6K in May. Furthermore, the ILO Unemployment Rate is seen ticking higher to 4% during the three months to April, while Average Hourly Earnings likely accelerated during the reported period, pointing to signs of persistence in underlying price pressures. Hence, any positive surprise will reaffirm bets that the Bank of England (BoE) will be far more aggressive in policy tightening to contain stubbornly high inflation, which, in turn, should provide a goodish lift to the British Pound and the GBP/JPY cross .

In the meantime, the prospect of Japanese authorities intervening in the markets to support the domestic currency, along with worries about a global economic slowdown, lends some support to the safe-haven Japanese Yen (JPY). This, in turn, is holding back traders from placing aggressive bullish bets around the GBP/JPY cross. That said, expectations that the BoJ will stick to its dovish stance might keep a lid on any meaningful gains for the JPY. In fact, BoJ Deputy Governor Masazumi Wakatabe said on Monday that there are overwhelming cases for the continuation of the ultra-easy monetary policy measures.

The aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/JPY cross is to the upside and supports prospects for an extension of the recent upward trajectory witnessed over the past month or so. Traders, however, now prefer to wait on the sidelines ahead of this week’s key UK macro data, including the monthly GDP print on Wednesday, and the BoJ monetary policy meeting on Friday.

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