GBP/JPY consolidates BOE-led strong gains to mid-153.00s

The GBP/JPY cross staged a solid rebound from closer to over three-week lows and surged through the 153.00 handle post-BOE.

The BOE minutes suggested earlier, faster rate hikes than projected in November, which accompanied with an upbeat economic assessment triggered a sharp GBP short-covering rally. The cross rallied over 200-pips from session lows and now seems to have stabilized around mid-153.00s.

Meanwhile, the Japanese Yen remained heavily offered, despite a fresh wave of global risk aversion trade, and remained supportive of the pair's strong bid tone. 

It, however, remains to be seen if bulls are able to build on the short-covering bounce or the up-move is utilized as an opportunity to unwind bullish bets/initiate fresh short-positions. 

Technical levels to watch

On a sustained move beyond mid-153.00s, a fresh bout of short-covering move is likely to accelerate the up-move even beyond the 154.00 handle towards 154.35-40 supply zone. 

On the flip side, the 153.00 handle now seems to protect the immediate downside and is closely followed by the 152.80-75 region, which if broken could drag the pair back towards the 152.00 handle.