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GBP/JPY extends rally, tests 216.35 resistance area
The pair is around 216.0, holding a near-term bullish bias after gaining more than 3% from August 2 lows.
The British pound extended gains versus the Japanese yen for a third straight day, with GBP/JPY trading near 216.0 as traders focus on the July 31 high around 216.36 and the nearby 216.35 resistance area, according to FXStreet.
FXStreet cited mixed UK employment data earlier in the session, where the ILO unemployment rate held steady at 4.9% in the three months to June versus a forecast for 4.8%, while wage inflation ticked up and employment growth slowed.
On the yen side, FXStreet pointed to weaker momentum after Japan’s GDP report showed economic growth slowed in the second quarter, which could complicate the Bank of Japan’s plans to accelerate its monetary tightening cycle.
The outlet also flagged technical signals, saying the Relative Strength Index (14) is nearing overbought territory and the MACD has flattened around the zero line, while a break above 216.35 could open the way toward an area between 217.16 and 217.53.