GBP/JPY moves away from multi-month top, slides below 153.00 ahead of BoJ’s Ueda

• GBP/JPY attracts sellers for the second successive day amid the post-BoJ JPY strength.
• The BoJ rate-hike uncertainty and reduced bets for more BoE rate cuts to limit losses.
• Traders now look to the post-meeting conference for some meaningful opportunities.

The GBP/JPY cross drifts lower for the second straight day on Thursday and retreats further from over a three-month peak, around the 199.80 region touched the previous day. Spot prices slide below the 198.00 mark after the Bank of Japan (BoJ) announced its decision during the Asian session, albeit remain confined in a familiar range held since the beginning of this week. 

As was widely anticipated, the BoJ decided to leave monetary policy settings unchanged on the back of the political uncertainty after Sunday's snap elections in Japan. In the accompanying statement, the BoJ reiterated that it will continue to raise policy rates if the economy and prices move in line with the forecast. This, along with fears of possible government intervention and nervousness ahead of the November 5 US presidential election, drive haven flows towards the Japanese Yen (JPY) and exerts some pressure on the GBP/JPY cross. 

The British Pound (GBP), on the other hand, is weighed down by the emergence of some US Dollar (USD) dip-buying, which turns out to be another factor dragging spot prices lower. That said, doubts over the BoJ's ability to hike interest rates further, along with diminishing odds for more aggressive interest rate cuts by the Bank of England (BoE), could offer some support to the GBP/JPY cross. This, in turn, warrants some caution for bearish traders and before confirming that spot prices have topped out in the near term.

Investors now look forward to the post-meeting presser where comments by BoJ Governor Kazuo Ueda should influence the JPY and provide some impetus to the GBP/JPY cross in the absence of any relevant macro releases from the UK on Thursday.