GBP/JPY jumps to test 148.00, fresh 2017 tops

The GBP/JPY cross broke its Asian consolidation box to the upside in early Europe, driving the rate sharply higher in a bid to test 148 handle.  

GBP/JPY: Focus shifts to BOE

The GBP/JPY pair now advances +0.28% to 147.88, fighting hard to surpass 148 barrier. The cross met stiff resistance at the last, as the renewed uptick in cable lost legs near 1.2985 levels amid resurgent USD demand across the board.

However, fresh buying interest seen behind USD/JPY helps keep the latest leg higher intact in the cross. The USD/JPY pair regained 114 handle and now heads for a retest of eight-week tops reached at 114.08.

Amid a lack of fundamental drivers in the UK docket, markets await the US import prices data and Fedspeaks for fresh impact on the buck, which will eventually impact both the GPB and JPY. Meanwhile, the GBP traders eagerly await the BOE’s ‘Super Thursday’s for fresh direction.

GBP/JPY: Technical Levels                                                                               

Higher side: 148.57 (Dec 2016 highs), 148.79 (classic R2/ Fib R3), 149 (round number)

Lower side: 147.25 (daily pivot), 146.88 (5-DMA), 146.38 (May 9 low)