GBP/JPY continues scaling higher, surges to 1-1/2 month highs beyond 146.00 mark

The GBP/JPY cross extended its recent upward trajectory and has now jumped to 1-1/2 month highs, beyond the 126.00 handle.

The cross traded with a positive bias for the seventh consecutive session and this week's strong up-move got a boost from BOE Governor Mark Carney's remarks on Wednesday that some removal of monetary stimulus would become necessary if tolerance for above-target inflation falls. 

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Adding to this, an offered tone surrounding the Japanese Yen, in wake of today's disappointing release of monthly retail sales, further collaborated to the pair's strong upsurge to the highest level since May 16. 

With the prevalent cautious environment failing to boost the Japanese Yen's safe-haven demand and stall the pair's strong up-move, a follow through bullish momentum, back closer to yearly tops touched in May, now seems a distinct possibility.

Technical levels to watch

Immediate resistance is pegged near 146.65 level, above which the cross seems all set to surpass the 147.00 handle and aim towards testing its next hurdle near 147.75-80 region ahead of the 148.00 mark.

On the flip side, mid-145.00s now seems to protect the immediate downside, which if broken might trigger a corrective slide below the key 145.00 psychological mark towards 144.55 intermediate support en-route sub-144.00 level.