GBP/JPY clocks 5-day high, BOE hike priced-in?

• GBP/JPY rises to 5-day high in Asia
• The 2-year UK gilt yield indicates the BOE rate hike has been priced-in

GBP/JPY extended Tuesday's sharp gains to a 5-day high of 151.29 levels in the Asian session today, largely on the back of moderate weakness in the Japanese Yen.

BOE rate hike priced-in?

The Bank of England (BOE) is widely expected to hike rate by 25 basis points (bps) tomorrow. The move appears to have been priced-in as the two-year gilt yield (more sensitive to short-term rate hike bets) has rallied from the September low of 0.14 to Oct. 25 high of 0.509.

Furthermore, most economists believe that Carney won't be in a hurry to hike rates after tomorrow's move. Thus, GBP bulls need to be cautious.

GBP/JPY Technical Levels

The cross was last seen trading around 151.17. A break above 151.39 (Oct. 25 high) would open doors for 151.58 (Sep. 28 high) and 152.00 (zero levels). On the other hand, a breakdown of support at 151.00 (zero figure) could yield a sell-off to 150.49 (support on 4h) and 149.85 (4-hour 50-MA).