Key Moments
- GBP/JPY trades around 216.00 as the cross records a third straight day of gains despite mixed UK labor data.
- UK ILO Unemployment Rate held at 4.9% in the three months to June, missing expectations for a drop to 4.8%.
- Soft Japanese GDP figures have weighed on the Yen, complicating prospects for faster Bank of Japan tightening.
GBP/JPY Holds Firm Near Resistance
The British Pound (GBP) is edging higher against the Japanese Yen (JPY) on Tuesday, extending its advance for a third consecutive session in spite of earlier mixed labor-market readings from the United Kingdom. At the time of writing, GBP/JPY is trading at 216.00, with buyers eyeing the July 31 peak at 216.36 as the next key upside reference.
Earlier UK data showed the ILO Unemployment Rate remained at 4.9% in the three months to June, disappointing expectations for a modest improvement to 4.8%. While employment growth slowed, the number of jobless claimants unexpectedly declined and wage inflation moved higher, underscoring the mixed nature of the report.
The Yen has remained under pressure following Japanese Gross Domestic Product (GDP) figures released on Monday, which indicated that economic expansion slowed in the second quarter. The weaker growth backdrop is seen as a potential obstacle for the Bank of Japan’s efforts to expedite its monetary tightening trajectory.
Technical Picture: Uptrend Intact but Momentum Signals Caution
From a technical perspective, GBP/JPY is trading near 216.05 and continues to exhibit a constructive short-term tone after climbing more than 3% from its August 2 lows. However, the 14-period Relative Strength Index (RSI) is approaching overbought territory, signaling that the recent upswing may be stretched.
At the same time, the Moving Average Convergence Divergence (MACD) indicator has leveled off around the zero line, suggesting that upside momentum is losing traction even as price holds firm.
On the upside, a clear move through the 216.35 resistance region would open the way toward a prior support band between 217.16 (July 29 low) and 217.53 (July 21 low), followed by the July 30 high near 218.70.
On the downside, an initial pullback would likely encounter support at Monday’s low of 215.41. Below that, the August 12 low at 214.53 comes into view, followed by the August 6 and 7 highs in the 213.230 area.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Japanese Yen Performance Against Major Currencies
The table below summarizes the percentage changes of the Japanese Yen (JPY) versus major currencies today. According to the data, the Yen showed its strongest relative performance against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.11% | 0.16% | -0.07% | 0.02% | 0.42% | -0.00% | |
| EUR | -0.05% | 0.07% | 0.15% | -0.11% | -0.02% | 0.38% | -0.04% | |
| GBP | -0.11% | -0.07% | 0.04% | -0.17% | -0.10% | 0.32% | -0.11% | |
| JPY | -0.16% | -0.15% | -0.04% | -0.22% | -0.14% | 0.26% | -0.16% | |
| CAD | 0.07% | 0.11% | 0.17% | 0.22% | 0.08% | 0.49% | 0.06% | |
| AUD | -0.02% | 0.02% | 0.10% | 0.14% | -0.08% | 0.40% | -0.01% | |
| NZD | -0.42% | -0.38% | -0.32% | -0.26% | -0.49% | -0.40% | -0.41% | |
| CHF | 0.00% | 0.04% | 0.11% | 0.16% | -0.06% | 0.01% | 0.41% |
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