GBP/JPY back slightly after knocking on 147.00

• Sterling lifts against the Yen on yesterday’s BoJ news.
• GBP traders are now looking towards the BoE’s showing on Thursday.

The GBP/JPY pairing is trading into 146.70, slipping from Tuesday’s high at the 147.00 major technical level. The Sterling lifted against the Japanese Yen yesterday as the BoJ delivered a monetary policy statement that largely saw risk appetite return to G10 currency markets, and the GBP/JPY rose from the day’s low of 145.30.

Wednesday will be bringing Markit PMIs for the UK at 08:30 GMT, and the reading is expected to slip down from 54.4 to 54.2 today, but GBP traders will be keeping their eyes out for the Bank of England’s (BoE) latest interest rate call, which is due on Thursday and has markets expecting a 25 bps rate hike from the UK’s central bank, though a recent slump for UK economic data sees expectations of a rate increase thrown into question.

GBP/JPY Levels to watch

With the Guppy’s big jump yesterday into the 147.00 handle, support is priced in at the last swing lows just above the 145.25 level, and bulls will be looking to make a break for the 61.8% Fibo retracement level at 147.75, though a likely bearish correction will first have to remain above the last swing low at 145.33 to keep bullish tension on the rise.