GBP/JPY surges above the 182.00 mark following the BoJ rate decision

• GBP/JPY gains momentum around 182.15 after the BoJ rate decision.
• BoJ decided to keep the interest rate and 10-year JGB yield target at -0.1% and 0% respectively.
• The growing worries about a recession in the UK economy could weigh on the British Pound.
• Market players await the Bank of England (BoE) rate decision on Thursday.

The GBP/JPY cross surges above the 182.00 mark during the Asian trading hours on Tuesday. The cross picks up bids following the Bank of Japan (BoJ) policy announcements. Investors will shift their focus to the Bank of England (BoE) interest rate decision for fresh impetus. The British central bank is likely to maintain the rate on Thursday. The cross currently trades around 182.15, gaining 0.41% on the day.

On Tuesday, the BoJ decided to keep the interest rate and 10-year Japanese Government Bond (JGB) yield target at -0.1% and 0%, respectively, after its October meeting. However, the central bank decided to make YCC more flexible and changed the language around the 1.0% 10-year JGB yield cap.

On the other hand, the growing worries about a recession in the UK economy could weigh on the British Pound (GBP). That being said, soft labor demand, sluggish business activity, and weak consumer spending are likely to support the BoEo maintain the status quo at its November meeting.

Looking ahead, the attention will turn to the BoE rate decision on Thursday. The BoE officials' comments might offer hints about the future monetary policy path for the rest of the year. Traders will take more cues from these events and find trading opportunities around the GBP/JPY cross.