On Tuesday, there was an increase in demand for the GBPJPY currency pair at 174.582, which prevented a decline from its highest point in several years.

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• GBP/JPY attracts some buyers on Tuesday and stalls the overnight pullback from a multi-year top.

The pair currently trades last at 174.582.

The previous day high was 175.77 while the previous day low was 174.36. The daily 38.2% Fib levels comes at 174.9, expected to provide resistance. Similarly, the daily 61.8% fib level is at 175.23, expected to provide resistance.

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.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 174.63 at the time of writing. Pair opened at 174.64 and is trading with a change of -0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 173.17, 50 SMA 169.84, 100 SMA @ 165.69 and 200 SMA @ 164.85.

The previous day high was 175.77 while the previous day low was 174.36. The daily 38.2% Fib levels comes at 174.9, expected to provide resistance. Similarly, the daily 61.8% fib level is at 175.23, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 174.07, 173.51, 172.66
• Pivot resistance is noted at 175.49, 176.33, 176.9

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