GBP/JPY extends post-UK jobs recovery to 146.00 handle

The GBP/JPY cross pared over 50% of its steep losses to near two-week lows and is now looking to regain control over the 146.00 handle.

The British Pound extended post-UK jobs data-led recovery move and has been a key factor helping the cross to recover around 70-pips from session lows. Today's UK employment details revealed a lower-than-expected change in claimant counts, while the unemployment rate unexpectedly ticked lower to 4.5%. 

This coupled with a slightly stronger than expected weekly earnings growth (excluding bonus) further collaborated to the pair's provided with a much-needed respite for the British Pound.

   •  UK unemployment rate ticked down to a new generational low of 4.5% - BBH

Despite the swift recovery, the cross maintained its negative tone for the second consecutive session amid persistent safe-haven demand, which was seen lending support to the Japanese Yen and eventually keeping a lid on any further recovery move. 

With the UK economic data out of the way, broader market risk sentiment might now turn out to be a key determinant of the pair's movement through Wednesday's trading session.

   •  UK jobs report no Bank of England game changer - ING

Technical levels to watch

Momentum beyond the 146.00 handle could get extended towards 146.30-35 horizontal resistance, above which a bout of short-covering could lift the cross back towards reclaiming the 147.00 handle ahead of resistance near 147.40-45 area. 

On the flip side, renewed weakness back below 145.70 level might continue to find some support near session lows, around 145.30-25 zone, which if broken would turn the cross vulnerable to extend the corrective slide further towards 144.25 horizontal support.