GBP/JPY drops ahead of UK wage growth data

GBP/JPY faced rejection at 140.15 (38.2% of 126.70-148.46) in the late North American session and dropped to 139.50 levels in Asia. 

Focus on UK data

The UK data due for release later today is expected to show the average earnings including bonus ticked higher to 2.6% in three months to November. Meanwhile, the unemployment rate is seen rising to 4.9% from 4.8%. 

The British Pound is heading into the data release on a strong footing, courtesy of UK PM May’s ‘Hard Brexit’ talk on Tuesday. A strong wage growth figure could yield a break above 140.15 levels. 

GBP/JPY Technical Levels

A break above 140.15 (38.2% fib) would open the doors to 140.54 (10-DMA) and then to 141.30 (50-DMA). On the lower side, a breach of 139.16 (5-DMA support) could yield a sell-off to 138.52 (Nov 29 low). A violation there would expose strong support at 137.58 (50% fib).