GBP/JPY Soars 1% Beyond 158 Handle on BOE
The GBP/JPY pair
climbed further to hit fresh ten-day highs after the BOE kept monetary
policy unchanged, although surprised markets over its confidence over
UK’s economic prospects post EU referendum.
GBP/JPY jumps 200-pips on BOE
Currently, GBP/JPY rallies 0.94% to 158.07, quickly retreat from a spike
to fresh ten-day highs posted at 158.29 immediately after the BOE announcement.
Despite BOE’s inaction and lower growth and inflation forecasts, the
pound managed to extend gains against its American peers, largely backed
by the BOE’s strong remarks on the Brexit issue. BOE’s MPC statement
cited, "Whatever the outcome of the referendum and its consequences, the
MPC will take whatever action is needed to ensure that inflation
expectations remain well anchored and inflation returns to the target
over the appropriate horizon.”
Moreover, fresh spurt of buying interest seen around the USD/JPY pair
also contributed to the recent upmove in the GBP/JPY cross. Meanwhile,
markets digest a flurry of crucial information from the BOE published in
the last hour and now await the BOE Governor Carney’s presser for
further direction on the cross.
GBP/JPY Levels to consider
The pair has an immediate resistance at 160 (round number), above which
161.94 (pre-BOJ levels) would be tested. On the flip side, support is
seen at 156.66 (daily low) below that at 155.98 (May 10 Low).
