GBP/JPY Price Forecast: Pound steadies below the 216.35 resistance area
The British Pound (GBP) edges higher against the Japanese Yen (JPY) on Tuesday and extends gains for the third consecutive day, despite the mixed UK employment figures seen earlier on the day.
The British Pound (GBP) remains relatively stable below the 216.35 resistance area against the Japanese Yen (JPY) on Tuesday, despite mixed UK employment figures released earlier. The GBP/JPY pair is currently trading at 216.00, with traders keeping a close eye on the July 31 high of 216.36. UK data showed that the unemployment rate, as measured by the ILO Unemployment Rate, stayed unchanged at 4.9% for the three months ending in June, falling short of expectations for a slight decrease to 4.8%.
While employment growth slowed, the number of jobless claims decreased unexpectedly, and wage inflation ticked upward. Meanwhile, the Japanese Yen has been struggling due to Japan's GDP figures released on Monday, which indicated a slowdown in economic growth for the second quarter, potentially hindering the Bank of Japan's plans to accelerate its monetary tightening.
Although the Relative Strength Index (14) is nearing overbought territory, suggesting the rally might be overextended, the Moving Average Convergence Divergence (MACD) indicator has flattened around the zero line, indicating the latest advance may be losing momentum. A break above the 216.35 resistance level would expose a previous support zone between 217.16 (July 29 low) and 217.53 (July 21 low), preceding the July 30 high, near 218.70.
Conversely, a bearish reversal could find support at Monday's low of 215.41, followed by the August 12 low of 214.53 and the August 6-7 highs around the 213.230 area.
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