The GBP/JPY cross pair comes under intense selling pressure after the BoE warns of an economic downturn.
After experiencing a dramatic turnaround from the vicinity of the 164.00 mark on Thursday, prices have now dived to the mid-161.00s.
The British pound weakens across the board after BoE warned that a UK recession will begin in the 4th quarter. It is also predicted to last all the way through next year.
The UK central bank stated that the monetary policy is not a pre-set path. This suggests that the BoE is more likely to slow down the pace of its tightening cycle.
This has however had impact on sterling and prompted aggressive selling around the GBP/JPY cross.
