GBP/JPY hits a fresh post-referendum high, still unable to rally above 155.50

• Pound boosted by UK employment data. 
• GBP/JPY erased yesterday’s losses, reaffirms bullish bias. 

The GBP/JPY pair rose from 154.35 to levels above 155.00 after the release of UK employment data. Afterward peaked at 155.60, the new post-Brexit referendum high. Near the end of the US session it was hovering around 155.00/10, up 65 pips from yesterday’s close. 

The jobs report in the UK showed the highest employment rate since 1971 and a modest increase in wages during the three-month period to November. Average hourly earnings excluding bonus rose 2.4% and including bonus 2.5%. Wages are rising still below inflation but the labor market shows positive signals. 

The numbers help GBP/USD rise above 1.4100 and EUR/GBP to drop to 0.8700. Those moves boosted GBP/JPY that climbed to 155.60, the highest since June 2016. The pair pulled back finding support at 154.80. 

Technical levels 

The trend still points clearly to the upside but the pair is finding difficulties rising further above 155.50. A daily close above would clear the way to more gains. Resistance levels might be seen at 155.85, 156.00 and 156.55. On the flip side, the immediate support lies at 154.80, followed by 154.10 (Jan 24 low) and 153.70 (Jan 23 low). The key support might be found at 151.50/70, the uptrend line from August highs. A break lower could signal that a top is in place.