GBP/JPY jumps back closer to 3-week tops post-UK jobs data

   •  GBP regains traction on stronger UK earnings growth/fall in unemployment rate.
   •  Traders largely shrugged off an unexpected jump in the UK claimant count.
   •  Stronger Yen now seemed to cap gains ahead of Thursday’s BoE decision.

The GBP/JPY cross finally broke out of its Asian/early European consolidation phase and jumped back closer 3-week tops post-UK employment details.

The British Pound gained some fresh traction after the UK average earnings (including bonus) recorded a better-than-expected growth of 2.8% and the unemployment rate fell back to a multi-decade low level of 4.3%. The positive reading largely offset an unexpected jump in the number of people claiming unemployment-related benefits and provided a minor boost. 

Further gains, however, remained capped amid a strong bid tone surrounding the Japanese Yen. This coupled with investors' reluctance to place aggressive bets ahead of Thursday's BoE decision might further collaborate towards keeping a lid on any meaningful up-move for the cross.

Technical levels to watch

Immediate resistance is pegged near 149.80 area, above which the cross seems all set to surpass the key 1.50 psychological mark and head towards testing 150.30-35 supply zone.

On the flip side, the 149.00 handle now becomes an immediate support to defend, which if broken might prompt some additional long-unwinding trade and drag the cross back towards the very important 200-day SMA support near the 148.10-148.00 region.