GBP/JPY surges to 140.00 handle post-BoE

The GBP/JPY cross extended recovery momentum from weekly lows and jumped to the key 140.00 psychological mark in the aftermath of BoE announcement.

Spot accelerated the recovery move and gained further traction after the BoE monetary policy statement sounded less dovish stance. The MPC members' assessed that the overall economic activity remained resilient and recent data shows a steady rate of economic expansion, aided by overseas growth.

The minutes of meeting also revealed MPC voted 8-1 to keep rates on hold and shows that some member(s) see chances of a rate-hike might be needed sooner.

Immediately after the announcement, the British Pound spiked across the board, helping the GBP/JPY cross to prolong its recovery move from the lower end of three-week old trading range.

Meanwhile, a range-bounce action around the USD/JPY major did little to provide any additional impetus, albeit seems to have collaborated towards capping the up-move near the 140.00 handle, at least for the time being.

Technical levels to watch

On a sustained strength beyond 140.00 mark, the cross seems to aim towards yesterday's swing high resistance near 140.60 level before darting towards the next major hurdle near 141.00 round figure mark.

Meanwhile on the downside, retracement back below 139.50 level seems to drag the cross back towards the 139.00 handle, en-route an important horizontal support near 138.40 area.