GBP/JPY falls after encountering resistance around 165.00 as BOE Bailey's speech is anticipated

The GBP/JPY pair has experienced a sharp decline after encountering selling pressure at the round resistance level of 165.00. The asset attempted to surpass the important resistance of 165.00 for a second time with insufficient strength, resulting in a substantial decline. The asset has stayed in the hands of bulls after protecting the bulls of the pound against a decline below 161.00.

The election of Liz Truss as the new Prime Minister of the United Kingdom has given economic stability to the country. Consumers are regaining faith in the economy as a result of the introduction of new relief packages designed to protect them from higher energy costs, less work possibilities, and greater payouts for similar consumption owing to price pressures.

Cabinet members have announced a 130 billion pound fund for freezing bills. The new cabinet will establish a fixed unit pricing for the sale of gas and electricity to families.

And now, Truss will reduce household taxes, which will continue to aid the fight against rising payouts. The Cabinet will also prioritize increasing investments and accelerating the employment creation process.

In addition, the Bank of England (BOE) Governor Andrew Bailey's address will remain a focal point. On September 15, BOE's Bailey will determine the likely monetary policy action.

On the Tokyo front, the weaker household spending pattern is affecting the yen bulls. Tuesday's data on Total Household Expenditures were 3.4% lower than anticipated and 3.5% lower than the previous publication. The Bank of Japan's (BOJ) ultra-dovish monetary policy is failing to have a significant impact on the prospects for a downturn.