GBP/JPY Price Forecast: Holds above 189.00 after UK Unemployment Rate unexpectedly falls

• GBP/JPY holds positive ground around 189.20 in Tuesday’s European session. 
• The cross remains negative on the 4-hour chart, with the bearish RSI momentum indicator. 
• The first upside barrier is located at 189.50; the initial support level is seen at 186.48. 

The GBP/JPY cross attracts some buyers to near 189.20 on Tuesday during the early European trading hours. The Pound Sterling (GBP) gains traction after the latest labor market data showed unemployment across the UK has dropped unexpectedly in the three months to June. 

The UK Unemployment Rate fell to 4.2% in April-June versus 4.4% prior, the Office for National Statistics (ONS) showed Tuesday. Economists expected the figure to rise to 4.5%. Meanwhile, the Claimant Count Change increased by 135K in July, compared with a revised gain of 32.3K in June, below the estimation of 14.5K by a wide margin.

GBP/JPY keeps the bearish vibe unchanged on the 4-hour chart as it holds below the key 100-period Exponential Moving Average (EMA). However, a further upside cannot be ruled out as the Relative Strength Index (RSI) edges higher above the midline near 61.85. 

A decisive break above the upper boundary of the Bollinger Band near 189.50 will see a rise to the 192.00 psychological level. Any follow-through buying above the mentioned level could pave the way to 193.26, a high of August 1. 

On the flip side, a low of August 9 at 186.48 acts as an initial support level for the cross. The key contention level emerges in the 185.55-185.60 zone, representing a low of August 8 and the lower limit of the Bollinger Band. The additional downside filter to watch is 182.81, a low of August 6. 

GBP/JPY 4-hour chart