GBP/JPY Outlook (16 July 2021)

#OPINIONLEADER#

ByJin Dao Tai

 JUL 16, 2021

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced up from the key level of 152.

The UK employment data released yesterday indicated a strong increase in average earnings while the number of people claiming for unemployment benefits continued to decline faster than forecasted. However, unemployment rate inched higher.

• Average Earnings Index 3m/y (Actual: 7.3%, Forecast: 7.1%, Previous: 5.7% revised from 5.6%)
• Claimant Count Change (Actual: -114.8K, Forecast: -32.5K, Previous: -151.4K revised from -92.6K)
• Unemployment Rate (Actual: 4.8%, Forecast: 4.7%, Previous: 4.7%)

During his speech yesterday, Bank of England committee member Saunders said that early quantitative easing tapering will be discussed in the upcoming monetary policy meetings amid the recent strong economic activities and inflation.

Currently, GBP/JPY is testing to break below the key level of 152. Its next support zone is at 151.000 and the next resistance zone is at 153.800.

Look for short-term buying opportunities of GBP/JPY if it bounces up from the key level of 152.