#GBPJPY @ 162.078 -imp levels: is receiving buying interest near 162.00 despite upbeat Japan’s employment data.

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• GBP/JPY is receiving buying interest near 162.00 despite upbeat Japan’s employment data.
• Japan’s Retail Sales data is expected to remain upbeat despite little-deviated price pressures.
• Energy bills are likely to accelerate inflationary pressures in the UK economy.

The pair currently trades last at 162.078.

The previous day high was 162.65 while the previous day low was 161.38. The daily 38.2% Fib levels comes at 162.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 161.86, expected to provide support.

The GBP/JPY pair has sensed a mild buying interest after hitting a low of 162.00 in the early European session. Earlier, the asset remained in a negative trajectory after the release of Japan’s employment data. Japan’s jobless rate remained unchanged at 2.6%. While the Jobs/Applicants ratio improved significantly to 1.29 from the expectations and the prior release of 1.27.

Japan’s tight labor market strengthened the yen bulls for a short span of time, however, the downside bias remains unchanged as the Bank of Japan (BOJ) is continued with its prudent monetary policy stance. BOJ’s agenda of keeping the inflation rate above 2% could not attain without soaring wages in Tokyo. Japan’s households won’t be able to make higher payouts for inflation-adjusted goods and services amid lower-valued paychecks.

Going forward, investors will focus on Japan’s Retail Sales data, which is seen on Wednesday. The annual Retail Sales are expected to display a decent upside to 1.9% against the prior release of 1.5%. This indicates an improvement in retail demand, which indicates the confidence of consumers in the economy. In times, when Western leaders are displaying weaker Retail Sales numbers, upbeat Japan’s Retail Sales data will strengthen the yen bulls.

Meanwhile, pound bulls are worried over soaring energy bills as the regulator has announced an increase in the price cap of energy prices by 80%. The inflation rate in the UK economy is still trading at four-decade levels and further acceleration due to higher energy bills will dent the sentiment of the households.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 162.01 at the time of writing. Pair opened at 162.43 and is trading with a change of -0.26 % .

The pair is trading below its 20 Daily moving average @ 162.16, below its 50 Daily moving average @ 163.53 , below its 100 Daily moving average @ 163.1 and above its 200 Daily moving average @ 159.15

The previous day high was 162.65 while the previous day low was 161.38. The daily 38.2% Fib levels comes at 162.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 161.86, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 161.65, 160.88, 160.38
• Pivot resistance is noted at 162.93, 163.43, 164.2

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