GBP/JPY surges through 147.00, hits two-month highs on hawkish BoE minutes

The GBP/JPY cross spiked over 200-pips from the vicinity of 145.00 psychological mark and touched the highest level since mid-June in the post-BoE trading action.

The cross fell to a session low level of 145.15 in wake of the BoE decision to leave its key benchmark interest rates and QE program unchanged at 0.25% and £435 billion.

The British Pound, however, gained strong bullish traction as the accompanying meeting Minutes clearly revealed policymaker's broad consensus that withdrawal of some monetary stimulus would be appropriate over the coming months. 

   •  BOE MPC Minutes: some withdrawal of stimulus likely appropriate in coming months

The cross surged through the 147.00 handle, taking some intermediate stops, which seems to have aggravated the move over the past hour or so.

Technical levels to watch

Momentum above 147.60 level could get extended back towards recent swing highs resistance near the 148.00-10 region, touched in May. On the flip side, any retracement below the 147.00 handle now seems to find support near 146.80-70 area, which if broken might negate any near-term bullish bias.