It was a lull before the storm, as traders were awaiting the BOE rate decision today. It’s finally out but it also kicked us out of our GBP/JPY trade at stop loss.

Here’s what happened:

• The Bank of England’s Monetary Policy Committee (MPC) fixes monetary policy to match the 2% inflation mark, and in a way that supports to sustain growth and employment.
• At its meeting ending on 1 May 2019, the MPC decided unanimously to keep Bank Rate at 0.75%.
• The Committee decided collectively to keep the stock of Sterling non-financial investment-grade corporate bond purchases, funded by the issuance of central bank reserves, at £10 billion.
• The Committee also decided collectively to keep the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

So far, there’s nothing hawkish about it, which is why we see a bearish trend in GBP/JPY. The pair is facing some strong resistance at 145.650 which is pushing the Japanese currency pair lower.

The pair may find support around 145.250. Below this, the 50 periods EMA is likely to extend support around 144.750.

GBP/JPY – Trade Idea
Since we are out now, consider selling below 145.650 with a stop loss above 145.850 and take profit around 145.

Good luck!