GBP/JPY spikes to 183.50 and retreats ahead of UK jobs

FXStreet (Mumbai) - The bid tone on the GBP keeps growing bigger ahead of the crucial UK jobs data, driving GBP/JPY cross towards the mid-point of the 183 handle.

GBP/JPY hovers around hourly 200-SMA

Currently, the GBP/JPY pair trades 0.19% higher at 183.23, quickly fading a spike to fresh-session highs of 183.46. The GBP/JPY cross remains firmly bid and now retreats from the hourly 50-SMA resistance at 183.37 levels, mainly driven broad GBP strength as market anticipate encouraging figures of the UK labour market report.

However, the gains in the cross remain in check on the back of stronger yen versus the US dollar as weaker Chinese data and falling global equities deepen the persisting risk-off sentiment.

Focus now remains on the UK job report due for release shortly, which will provide fresh cues on the BOE’s outlook on the interest rates.

GBP/JPY Technical Levels

To the upside, the next resistance is located at 184 (round number) levels and above which it could extend gains to 184.35 (Oct 13 High). While on the flipside, a break below 182.97 (20-DMA), the prices could fall further to 182.34 (Today’s Low) levels.