Forex: GBP/JPY testing 144.00 level after BoE

FXstreet.com (Barcelona) - The GBP/JPY broke higher to test the 144.00 level, following the news surrounding the BoE policy rate decision. Though the cross is off its highs at 144.23, the pair remains within distance of the key upside 144.00 upside barrier, already recording steadfast gains of +2.23%.

“The GBPJPY pair rebounded sharply following the BOJ policy decision, the pair reached our downside targets and tested levels below 140.50 before moving higher again. Now, the bias is strongly bullish, as price has penetrated several technical resistance levels, suggesting the strength of the bullish move.” suggests the ICN.com analyst team.

Perhaps no pair today has been driven more by the decisions of central banks, with the latest decision coming from the BoE, which left unchanged both the lending benchmark and stimulus program at 0.5% and £375 billion, respectively. This was largely in line with expectations, as market participants anticipated the move by the central bank.

Following a break above the 143.80 resistance, ICN.com analysts points to additional measures at 144.35, onto 144.75, and 145.25. On the decline, the GBP/JPY is slated to face short-term support at 143.40, ahead of 142.60, and finally the 142.00 barrier.