GBP/JPY falls to 7-week lows below 181.00 after BoE decision

  • GBP/JPY comes under strong bearish pressure and falls to multi-week lows on Thursday.
  • The Bank of England kept its interest rate at 5.25% in a split vote.
  • The Bank of Japan will announce its monetary policy decision early on Friday.

GBP/JPY lost ground during the European session on Thursday and fell to its lowest level since early August at 180.83 before recovering to the 181.50 area. At the time of writing, the pair was down 0.9% on the day, standing at 181.54.

Following the September monetary policy meeting, the Bank of England (BoE) decided to keep the interest rate unchanged at 5.25%. Although investors expected the BoE to raise the interest rate by 25 basis points, weak UK inflation data revived expectations of no change. “Inflation has fallen sharply in recent months, we believe it will continue to do so,” the BoE stated in its monetary policy statement.

However, the immediate reaction saw the British Pound suffer heavy losses against its main rivals. The GBP/USD pair is now down 0.6% on the day and EUR/GBP is up 0.4% to 0.8670, highlighting the negative impact of the BoE policy decision on the Pound.

According to Reuters, the probability that the BoE will raise rates by 25 basis points in November fell to 64% from 81% before the rate decision.

Pound sterling quote today

The following table shows the percentage change of the British Pound (GBP) against the main currencies today.

USD EUR GBP CAD AUD JPY NZD CHF
USD 0.06% 0.53% 0.22% 0.47% -0.27% 0.13% 0.65%
EUR -0.08% 0.45% 0.14% 0.38% -0.35% 0.06% 0.57%
GBP -0.48% -0.45% -0.30% -0.06% -0.79% -0.35% 0.12%
CAD -0.22% -0.16% 0.31% 0.24% -0.50% -0.09% 0.42%
AUD -0.45% -0.40% 0.08% -0.23% -0.72% -0.32% 0.19%
JPY 0.25% 0.34% 0.81% 0.48% 0.73% 0.41% 0.91%
NZD -0.12% -0.05% 0.42% 0.09% 0.36% -0.38% 0.52%
CHF -0.66% -0.57% -0.12% -0.44% -0.20% -0.92% -0.52%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).

During the Asian session on Friday, the Bank of Japan will announce its monetary policy decision. Investors expect the BoJ to keep its monetary policy unchanged, including the yield curve control strategy.

GBP/JPY technical levels to watch

GBP/JPY

Overview
Latest price today 181.58
Today Daily Change -1.54
Today’s daily variation -0.84
Today’s daily opening 183.12
Trends
daily SMA20 184.06
daily SMA50 183.26
SMA100 daily 179.83
SMA200 daily 171.08
Levels
Previous daily high 183.35
Previous daily low 182.46
Previous weekly high 184.39
Previous weekly low 182.52
Previous Monthly High 186.77
Previous monthly low 180.46
Daily Fibonacci 38.2 182.8
Fibonacci 61.8% daily 183.01
Daily Pivot Point S1 182.61
Daily Pivot Point S2 182.09
Daily Pivot Point S3 181.72
Daily Pivot Point R1 183.49
Daily Pivot Point R2 183.86
Daily Pivot Point R3 184.38

Source: Fx Street

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