GBP/JPY tumbles to 133.00 handle after BOE decision

Immediate after the BOE announced its monetary policy decision, the GBP/JPY cross tumbled and held on to its sharp losses to currently trade around 133.00 handle. 

As was broadly expected, the BOE decided to cut its benchmark interest rates by 25 bps to a record low of 0.25%. The British Pound, however, came under intense selling pressure as the central bank decided to expand its asset purchase program with an additional purchase of up to £10 billion of UK corporate bonds and UK government bonds of £60 billion, taking the total asset purchases to £435 billion.

Meanwhile, the Japanese Yen maintained its range-bound movement, providing little support to restrict the ongoing sharp slide in the GBP/JPY cross.

Next in focus would be BOE presser, where market participants will now look for clues over possibilities of further easing by the central bank in the near-future.

Technical levels to watch

Sustained weakness below 133.00 handle is likely to extend the pair sharp downslide further towards its next major support near 132.00 round figure mark.

On the flip side, previous support near 134.00 handle now becomes immediate resistance, above which the pair could possibly extend its recovery towards 135.00 round figure mark.