The GBPJPY pair has experienced a decline for two consecutive days, dropping below the 182.50 level on Friday.

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• The GBP/JPY cross tallies a second consecutive day of losses, falling below the 182.50 area on Friday.

The pair currently trades last at 182.466.

The previous day high was 184.01 while the previous day low was 182.5. The daily 38.2% Fib levels comes at 183.08, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.44, expected to provide resistance.

On Friday, the GBP/JPY cross lost ground as the JPY trades with agains most of its rivals, including the USD, EUR,GBP and AUD. In that sense, the USD/JPY fell to a two-week low following US Nonfarm Payrolls data pressured down by falling American yields while the Japanese rates are rising.

In that sense, the yield on the 2,5 and 10-year Japanese bonds rose to their highest level since May. On the other hand, after Nonfarm Payrolls from the US from June came in lower than expected at 209K vs the 225k expected, US yields retreated. A 1.70% decrease was seen in the 2-year yield, bringing it down to 4.90%, whereas the rates for the 5-year and 10-year yields dropped to 4.29% and 4.02%, respectively.

In that sense, strong Labor Cash Earnings data from Japan released early in the Asian session seem to have fueled the rise in Japanese yields. In that sense, the average income, before taxes, per regular employee in the Asian country rose by 2.5% YoY in May vs the 0.7% expected by the markets. It is worth noticing that the Bank of Japan (BoJ) expressed that its short-term objective was to see wage growth and rising economic activity. That being said, the expectations of a pivot in monetary policy by the BoJ, may continue to strengthen the JPY.

On the British side, their economic calendar had nothing relevant to offer. The focus is next Tuesday’s labour market data, including Claimant Count and Average Earnings figures.

The daily chart, suggest a bearish outlook for the short term. Indicators are starting to show weakess with the Relative Strength Index (RSI) pointing south and the Moving Average Convergence Divergence, printing higher red bars. On the bigger picture, the outlook will favour the GBP as long as the cross holds above its main Simple Moving Averages of 20,100, and 200 days.

Support Levels: 181.45 (20-day SMA), 181.00 and 180.50.
Resistance Levels: 182.70, 183.00,184.00.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 182.51 at the time of writing. Pair opened at 183.55 and is trading with a change of -0.57 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 181.15, 50 SMA 175.53, 100 SMA @ 169.63 and 200 SMA @ 166.62.

The previous day high was 184.01 while the previous day low was 182.5. The daily 38.2% Fib levels comes at 183.08, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.44, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 182.7, 181.85, 181.19
• Pivot resistance is noted at 184.21, 184.86, 185.71

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