GBP/JPY  reverses early gains

• GBP/JPY falls sharply from daily highs
• Briefly traded below 151.00 

GBP/JPY moved sharply lower during the New York session and hit a 1-month low as the pound gave up its post-BoE gains.

GBP/USD retreated from a peak of 154.03 to its lowest level since Jan 12 at 150.81 before finding support at the 100-day SMA. The pound failed to build up on early gains inspired by BoE’s Governor Mark Carney.

Carney said that the UK economy remains broadly in line with forecasts and inflationary pressures are likely to firm. Regarding interest rates, Carney stressed that extra rate hikes will be gradual and limited.

GBP/JPY technical levels

At time of writing, GBP/JPY is trading at 151.56, still % below its opening price, with immediate supports seen at 150.81 (intraday low), 150.18 (Jan 11 low) and 150.00 (psychological level). On the flip side, resistances could be found at 154.03 (intraday high), 155.00 (psychological level) and 155.52 (Feb 5 high).