GBP/JPY - 4 Hour Chart

GBP/JPY Completes 61.8% Fibo While The U.K’s Avg Earnings Disappoints!

Posted Tuesday, August 14, 2018 by
Arslan Butt • 1 min read

One of the most awaited economic events of today is already out now. I’m speaking about the U.K. labor market figures. Earlier today, in our Aug 14 – Economic Event’s Brief, we spoke about the expectations from the U.K. employment report. I must say, that failed to surprise the market.

 

GBP/JPY - 4 Hour Chart

 

U.K. Employment Report

  • The average hourly earnings plunged to 2.4% from 2.5%  previously.
  • The jobless claims also fell short of expectations. Economists were expecting it to be 2.3k while the actual figure showed a rise of 6.2K.
  • Lastly, the unemployment rate is down from 4.2% to 4%. It tried to compensate the negative data but looks like the investors are confused on mixed figures.

 

 

Technically speaking, the GBP/JPY has already completed 61.8% retracement at 142.250. The same level is working as a solid hurdle for the pair. Taking a look at the 4- hour chart, you can see Japanese cross has formed a bearish candle exactly after testing 61.8% retracement level.

Is it a signal of bearish reversal?

Well, time will tell. But it’s worth taking a risk with a small sell position below 142.650 to target 141.852. Good luck!

 

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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