GBP/JPY Price Analysis: Renews intraday high above 175.00 as UK employment data appears impressive

• GBP/JPY jumps 50 pips as strong UK employment report bolsters hawkish BoE bets.
• Upbeat UK data joins pair’s rebound from 100-HMA to lure buyers.
• Fortnight-old ascending resistance line can prod bulls; sellers have a long road to travel before retaking control.

GBP/JPY reverses the previous day’s pullback from the highest levels since January 2016 with a quick jump to refresh intraday high near 175.20 amid the early hours of Tuesday’s London open. In doing so, the cross-currency pair justifies a strong UK employment report, as well as a rebound in the US Treasury bond yields.

That said, the GBP/JPY pair jumps nearly 50 pips as the UK Claimant Count Change for May drops -13.6K versus -9.6K expected and 46.7K prior, whereas the ILO Unemployment Rate for three months to April 3.8% compared to 3.9% previous readings and 4.0% market forecasts.

On a different page, the US 10-year and two-year Treasury bond yields bounce off intraday low during a two-day losing streak, mildly offered near 3.74% and 4.57% respectively at the latest.

Technically, the GBP/JPY pair bounces off the 100-Hour Moving Average (HMA) following the upbeat UK data. The recovery from the key HMA also takes clues from the bullish MACD signals and upbeat RSI (14) line to keep the buyers on board.

However, an upward-sloping resistance line from May 28, close to 175.70 by the press time, can challenge the GBP/JPY bulls as the RSI (14) line approaches the overbought territory.

On the flip side, a clear break of the 100-HMA, around 174.55 as we write, isn’t an open welcome to the GBP/JPY bears as the 61.8% Fibonacci retracement level of its May 31 to June 12 upside, near 173.65, prod the pair’s further downside.

Even if the quote breaks the 173.65 Fibonacci retracement support, the monthly low near 172.65 and the October 2022 peak of around 172.15 can restrict the quote’s south-run.

GBP/JPY: Hourly chart

Trend: Further upside expected