GBP/JPY Drops to 195.65 After Disappointing UK Jobs Report

GBP/JPY Weakens Toward 195.65 on Soft UK Labor Data and BoJ Tailwinds

Forex Update – June 10, 2025

The GBP/JPY currency pair fell to around 195.65 in early European hours on Tuesday as Pound Sterling retreated following weaker-than-expected UK employment data. Meanwhile, the Japanese Yen remained steady amid dovish expectations surrounding the Bank of Japan (BoJ), providing downside pressure to the pair.

UK Unemployment Rises, Weighing on the Pound

Figures from the UK Office for National Statistics (ONS) showed:

• Unemployment Rate (3M to April): 4.6% (vs. 4.5% previous)
• Claimant Count Change (May): +33.1K (vs. forecast +9.5K)
• Previous Claimant Count (revised): -21.2K

The higher jobless rate and surprise surge in jobless claims dented short-term optimism for the UK economy. Market participants now await Thursday’s UK GDP report for April, which may provide further clues on economic momentum.

📊 Related Insight: UK Economic Calendar and Data Forecasts

JPY Finds Support Amid Cautious BoJ Policy Outlook

Although the Bank of Japan has hinted at further rate hikes if core inflation returns to target, its cautious tone supports safe-haven demand for the Yen. This, in turn, has helped keep GBP/JPY under pressure despite the broader risk-on environment.

💹 Explore Analysis: BoJ Monetary Policy and JPY Outlook

Key Technical Levels for GBP/JPY

• Immediate Support: 195.30 (previous session low)
• Next Resistance: 196.50 (recent swing high)
• Trend Bias: Mildly bearish short-term, neutral medium-term

Conclusion

With the UK labor market showing early signs of strain and GBP/JPY reacting to mixed economic signals, traders should monitor upcoming GDP data and BoJ commentary closely. The 195.00–196.50 range remains key for near-term positioning.