GBP/JPY declines to lowest level since September

The Japanese Yen is soaring across the board after the Bank of Japan’s rate decision. The GBP/JPY pair cross is losing more than 700 pips on Tuesday amid rallying yen following the BoJ’s monetary policy announcement.

BoJ’s rate decision also raised the upper range of its yield curve control of the 10-year bond from 0.25% to 0.50% boosting the Japanese Yen, that is having one of the most significant gains in years. The decision was a big surprise for markets, leading to a selloff in government bonds.

The Yen is rising by more than 4% against its main rivals on Tuesday. The GBP/JPY cross is down by more than 700 pips, on its way to the lowest daily close since September 29.

Recently the cross bottomed at 159.06 and it is hovering around 159.40. Before BoJ’s decision, it was trading at 166.70. On the downside, the next strong support area is seen around 158.00.