has remained at the resistance level for quite some time. This area is interesting because we can see that there is another resistance level. If the price breaks through this resistance, it will move towards the next resistance level.
Highlight Fundamental this Week
Andrew Bailey (Bank of England Governor) – Speech Summary
- Bailey warned that the UK faces an “acute challenge” from weak economic growth and declining labor market participation since the COVID-19 pandemic.
- Two key drivers: an aging population and rising sickness-related absences among younger workers.
- He emphasized the need to boost productivity, as demographic trends are unlikely to reverse soon.
- The Bank of England is shifting focus from traditional to labor force participation, since the share of people aged 16–64 who are economically active remains below pre-pandemic levels—unlike most other advanced economies.
- In Q2 2025, 21.0% of working-age adults (16–64) were inactive—down from 22.2% last year but still above the 20.3% pre-pandemic level.
- Weak participation hampers the BoE’s efforts to bring inflation down to its 2% target. UK stood at 3.8% in July 2025, the highest among G7 nations.
Kazuo Ueda (Bank of Japan Governor) – Speech Summary
- Ueda stated that Japan’s tight labor market is expected to continue pushing wages higher, unless there is a major demand shock.
- Wage growth is broadening beyond large corporations and now includes small and medium-sized firms.
- He stressed that rising wages and labor market tightness are structural challenges for Japan’s economy, feeding into inflation dynamics and potentially influencing monetary policy decisions.
Ueda highlighted the need to expand labor participation, especially among women and foreign workers.
- Only about half of Japanese women hold full-time regular employment, compared to 80% of men.
- Foreign workers account for just 3% of the labor force, yet contributed to more than half of labor force growth between 2023 and 2024.
- He concluded that labor market reforms and higher participation are essential to support sustainable wage growth and stabilize the economy.
Technical Analysis
If we go down to a lower timeframe, we actually still have a fairly wide area if we want to take a position as a day trader. On this H4 timeframe, we can see a Symmetrical Triangle, which could be broken through.
However, if we look at the long term, we need to wait for further confirmation before the market truly shows its actual trend. Currently, the market still appears to be moving sideways and within a small range, even though the price is above the 200 EMA. But if we look at the MACD, volume has not yet accumulated, as indicated by the bullish histogram that has not strengthened.
Levels & Zones to trade GBP/JPY
Support Zone
- Long-term support 184.575 – 184.995
- Medium-term support 192.523 – 192.943
Resistance Zone
- Long-term resistance 207.615 – 208.036
- Medium-term resistance 203.107- 203.527