Anna 
The GBP/JPY cross extended its decline for the second consecutive day on Thursday, marking the third negative move in the past four days, as it dropped to a two-and-a-half-week low during the first half of the European session. Currently trading around the mid-185.00s, spot prices appear vulnerable to further downside ahead of the Bank of England’s (BoE) monetary policy decision later in the day.
The downward trajectory of the GBP/JPY cross is attributed to several factors. Firstly, there are expectations that the UK central bank will maintain the possibility of an interest rate cut in May, which weighs heavily on the British Pound (GBP). Additionally, the recent strength in the US Dollar (USD) stemming from less dovish sentiments also contributes to the downward pressure on the GBP.
Conversely, the Japanese Yen (JPY) continues to draw support from the Bank of Japan’s (BoJ) hawkish tilt announced last week and ongoing geopolitical risks. This combination of factors accentuates the bearish sentiment surrounding the GBP/JPY cross.
With the market eagerly awaiting the Bank of England’s decision, traders remain cautious, and the GBP/JPY cross may experience further downside movement as uncertainty prevails.
