GBP/JPY extend BoE-led up-move, spikes closer to weekly highs

The GBP/JPY cross regained traction near 139.75 region and built on previous session's strong recovery move from weekly lows.

Currently trading around 140.40 region, the cross has now moved closer to a three week old trading range resistance. Against the backdrop of yesterday's slightly less dovish BoE, positive sentiment surrounding the British Pound has been the key driver of the pair's bullish momentum for the second consecutive session.

The BoE monetary policy meeting minutes revealed that the decision to leave interest rates unchanged at record low level was not unanimous. Split BoE rate vote signaled less tolerance for rising inflationary pressure and possibilities of a rate hike earlier than expected, which eventually lifted the British Pound across the board. 

The upside risks to inflation have increased - BoE's Forbes

Ahead of the G20 meeting, the prevalent cautious sentiment was seen supporting the Japanese Yen's safe-haven appea, which although did little to hinder the pair's up-move but might collaborate towards restricting further up-move at weekly tops resistance near mid-140.00s.

Technical levels to watch

Momentum above 140.50-60 region is likely to accelerate the up-move towards next major hurdle near 141.00 round figure mark ahead of 141.40-50 hurdle. 

Meanwhile on the downside, retracement back below the key 140.00 psychological mark would reaffirm near-term trading range and drag the cross back towards 139.50 intermediate support ahead of the 139.00 handle and an important horizontal support near 138.40 area.