The price movement on the chart of the GBP/JPY currency pair on Monday yesterday was more positive after the price was seen to successfully jump out of the horizontal zone last week.
If observed, the price held above the 166.200 level throughout the past week with the high reached on Friday being at the 168.00 resistance level.
At the opening of the market early yesterday, the price which was flat at around 167.200 then showed a rise until it managed to overcome the resistance of 168.00 and reached a recent high around 169.00 at the end of the New York session.
The current movement of the price still shows a bullish trend with the price remaining above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/JPY chart.
The factor seen supporting the increase is the release of UK economic growth data in the European session yesterday with readings for October encouraging and encouraging the strengthening of the Pound.
Meanwhile, the yen moved weakly as market sentiment was restored by positive developments in China with reports that the Hong Kong border will be opened ahead of the Chinese New Year celebration.
Continuing trading today (Tuesday), prices were flat in the Asian session at the 169.00 level before focus turned to the release of the UK jobs data report at 3pm local time.
Looking at the report, the number of jobless claims in the UK in November jumped up to 30,500 compared to expectations of only 3,500.
The 3-month average wage index rose to 6.1% from 6.0%, while the unemployment rate also rose to 3.7%.
The overall reading looks rather gloomy, but the initial reaction shows a slight increase in the value of the Pound, but does not show such a significant movement.
If the rise continues, the price is seen to head towards the target zone of 172.00 to record the latest 6-week high.
The last time that level was touched was at the end of last October when it recorded the highest level in more than 6 years, that is since January 2016.
However, if the price rebounds lower again, the level of 168.00 is seen to be tested for the price to react and show a signal for further movement.
The continued lower decline will return to last week's support level at 166.200 after showing a bearish trend change.
