GBP/JPY sees little action after UK data

FXStreet (Mumbai) - The GBP/JPY did not react much to the UK employment and wage growth data and continues to trade around 165.55 levels.

Bearish mood intact

The bearish mood surrounding the British Pound remains intact despite of a drop in the unemployment rate and a better-than-expected claimant count change. The average hourly earnings also slowed; however, the slowdown was not as sharp as expected.

Meanwhile, the bid tone around JPY also remains intact due to the risk aversion in the European equity markets.

GBP/JPY Technical Levels

The immediate resistance is seen at 165.12 (hourly 5-MA), above which the cross could target 167.04 (hourly 50-MA). A break below 163.88 (Feb 2014 low) would open doors for a drop to 159.51 (monthly 50-MA).

UK wage growth came in at 2%, unemployment rate stood at 5.1%

The ONS today reported UK’s unemployment rate for the three months to November come in at 5.1%, lower than for a year earlier (5.8%). There were 1.68 million unemployed people, 99,000 fewer than for June to August 2015 and 239,000 fewer than for a year earlier. The employment rate was 74.0%, the highest since comparable records began in 1971.
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