Bearish Setup Triggered in GBP/JPY - UK Labor Report Disappoints - Forex News by FX Leaders

Bearish Setup Triggered in GBP/JPY – UK Labor Report Disappoints

Posted Tuesday, April 16, 2019 by
Arslan Butt • 1 min read

Fellas, GBP/JPY was holding firm below 146.950 due to lack of fundamentals. However, the market was overbought, and investors just need a reason to trigger a sell-off. The UK labor market report gave this reason.

  • According to the UK labor market report, the UK employment rate was estimated at 76.1%, higher than for a year earlier (75.4%) and the joint-highest figure on record.
  • The UK unemployment rate was estimated at 3.9%; it has not been lower since November 1974 to January 1975.
  • The UK economic inactivity rate was estimated at 20.7%, lower than for a year earlier (21.2%) and the joint-lowest figure on record.
  • In actual, the average hourly earnings remained unchanged at 3.5% along with the unemployment rate which also remained steady at 3.9%. However, Claimant Count Change disappointed the market with a rise of 28.3K vs. 26.7K. As a result, the Guppy is trading bearish and it’s very likely to target 146.

Support Resistance
145.13 147.36
143.84 148.31
141.61 150.54
Key Trading Level: 146.08

On the lower side, GBP/JPY has completed 23.6% retracement at 146.45. For now, it’s the next target is likely to be around 146.10, the 50% Fibonacci retracement level. So take your positions accordingly.

Good luck!

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About the author

Arslan Butt // 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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