12 Nov 2024

current;-197.164
target;-195.00
sl;-198

GBP/JPY is experiencing renewed selling pressure on Tuesday, influenced by several factors. Concerns regarding potential intervention are supporting the JPY, while a strong USD continues to exert downward pressure on the GBP. Uncertainties surrounding the Bank of Japan (BoJ) and the Bank of England's (BoE) hawkish stance may mitigate losses as the market anticipates UK employment data.

The GBP/JPY pair has encountered new selling interest after a brief increase during the Asian session, reaching just above the 198.00 level, and has since retraced a significant portion of the previous day's gains. Current trading is around the 197.00 level, reflecting a decline of over 0.35% for the day, as market participants await the release of the UK monthly employment figures for further direction.

The UK Office for National Statistics (ONS) is projected to announce an increase in the number of individuals claiming unemployment benefits to 30.5K in October, up from 27.9K, with the unemployment rate expected to rise to 4.1% for the three months ending in September. Investors will also closely monitor wage growth data, as it may impact expectations regarding the BoE's policy decisions in December, thereby providing significant momentum to the British Pound (GBP) and the GBP/JPY pair.