GBP/JPY finds good support ahead of 157.50

Following the UK jobs report release, the GBP/JPY cross stalled its downslide near 157.50 levels and re-attempted recovery back onto 158 handle.

GBP/JPY: Upside capped by negative European equities

Currently, GBP/JPY trades +0.24% to 158.20, struggling to take-out strong offers placed near 158.30 region. The cross in the GBP/JPY takes on the recovery mode in the mid-European session, largely backed by renewed bids seen in the cable, as markets cheer upbeat UK jobs reports in a delayed reaction. The UK’s unemployment rate stayed unchanged at 5.1% in March, as expected, with jobless claims falling 2,400 in April.

Moreover, the persistent bullish momentum seen in the USD/JPY pair on the back of broad based US dollar strength, also aids the recovery in the GBP/JPY cross. Moving on, markets now await the FOMC minutes for further USD moves, which will have significant impact on both GBP/USD and USD/JPY.

GBP/JPY Levels to consider

The pair has an immediate resistance at 159 (round number), above which 159.50 (post-BOJ highs) would be tested. On the flip side, support is seen at 157.66/50 (50-DMA/ psychological levels) below that at 157/ 156.95 (round number/ 5-DMA).