18 Feb 2025

• GBP/JPY strengthens following the release of the UK employment data.
• The ILO Unemployment Rate remained unchanged at 4.4% in the three months ending in December.
• Japanese Yen depreciates due to increased market optimism following the postponement of Trump's reciprocal tariffs.
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• The Claimant Count Change indicates that the number of individuals applying for unemployment benefits rose by 22,000 in January, in contrast to a revised decrease of 15,100 in December, falling short of the anticipated figure of 10,000. The Employment Change data for December was reported at 107,000, compared to 35,000 in November.
  
  Additionally, the GBP/JPY exchange rate has strengthened as the Japanese Yen (JPY) weakens, influenced by heightened market optimism following the delay in the enforcement of reciprocal tariffs by US President Donald Trump.
  
  Nevertheless, the Japanese Yen may recover its strength due to a growing hawkish sentiment regarding the Bank of Japan’s (BoJ) policy outlook, spurred by a strong Gross Domestic Product (GDP) report from Japan that surpassed expectations.
  
  Currently, the markets are factoring in an additional 37 basis points increase in interest rates by the Bank of Japan by 2025, which has propelled the yield on the benchmark 10-year Japanese government bond to its highest level since April 2010.

Support and Resistance Levels:

• Support:

  • 191.50
  • 191.25
  • 191.05

• Resistance:

  • 192.75
  • 193.00
  • 193.50

These levels are derived from recent market data and technical analysis.

Technical Indicators:

• Moving Averages: The pair is trading below its 50-day and 100-day moving averages, indicating potential bearish momentum.

• Oscillators: Indicators such as RSI and MACD suggest a neutral to bearish outlook.

It's important to note that market conditions can change rapidly. For the most accurate and personalized analysis, consider consulting with a financial advisor or using real-time trading platforms.