GBP/JPY surges to fresh two-month high ahead of UK jobs report

Extending its near-term recovery trend for tenth straight session, the GBP/JPY cross rose to a fresh two-month high ahead of UK labor market report.

Currently trading around mid-136.00s, the pair's strong bid tone is supported by a recovery staged by the GBP/USD major. Moreover, a positive opening for European equity market is indicative of improving investor risk-appetite and is exerting renewed selling pressure around the traditional safe-haven currency, Japanese Yen, eventually helping the GBP/JPY cross to maintain its strong bid tone. 

Following Tuesday disappointing UK CPI print, market participants on Wednesday will be focusing on monthly employment details from UK. Today's labor market report would help investors to evaluate possibilities of further easing by the Bank of England and trigger the next leg of directional move for the cross.

Technical levels to watch

From current levels, 137.00 round figure mark seems to act as immediate hurdle, which if cleared is likely to boost the cross further towards 137.50 resistance before surpassing 138.00 handle towards testing its next major resistance near 138.35-40 region. On the flip side, 136.10-136.00 handle now seems to protect immediate downside below which the cross is likely to witness a corrective slide towards 134.20-134.00 support area with 135.00 psychological mark acting as intermediate support.