GBP/JPY: Recovery losses strength ahead of Super Thursday

The pound is lower versus the yen on Wednesday, after rising sharply during the previous two days, ahead of the Super Thursday in the United Kingdom with the decision, minutes and the Quarterly Inflation Report from the Bank of England.

GBP/JPY stops below 158.00

GBP/JPY peaked during the Asian session at 157.95 reaching the strongest level since April 29 and then turned to the downside. It weakened further after the release of industrial production data from the UK that showed lower-than-expected numbers from March. The pair bottomed at 156.37.

During the American session attempted to recover but it found resistance at 157.30/35 and pulled back below 157.00. It was trading at 156.75, down a hundred pips that represents a bearish correction after a 440-pip rally from last week lows.

GBP/JPY levels to watch

Volatility in pound’s crosses tomorrow could be elevated considering Bank of England events. GBP/JPY continues to trade near multi-year lows that lie at 151.50/60 that could become exposed if the pair drops below 153.00.

On the opposite direction, the key resistance from current levels could be seen in the 158.00 - 158.40 area; a break and a consolidation significantly above could boost the pair toward 160.00 and to test April highs that lie at 162.80.