GBP/JPY Price Analysis: Tanks to eight-week low, shifts bearish amid BoJ hawkish remarks

GBP/JPY tumbles to an eight-week low at 178.53 after BoJ Ueda's comments; trades at 180.69.
Technical shift to bearish, pending daily close below Ichimoku Cloud (Kumo) at around 181.80, for further confirmation.
Downside potential: 180.00 support; breach opens doors to 178.53, 178.03, and July 28 low of 176.31.

Christian Borjon Valencia FXStreet

The GBP/JPY plummets more than 2.30% courtesy of comments by the Bank of Japan (BoJ) Ueda, which ultimately dragged the pair to an eight-week low of 178.53 before reversing toward the current exchange rate. At the time of writing, the cross trimmed some of its losses and trades at 180.69.

From a technical perspective, the pair has shifted bearishly, though pending registering a daily close below the Ichimoku Cloud (Kumo), which could open the door for further losses. On its way south, the GBP/JPY pierced a five-month-old support trendline, which capped the downtrend.

If GBP/JPY ends the day below the bottom of the Kumo, last seen at 181.80/85, that would confirm its bearish bias. As of writing, the first support is seen at the 180.00 mark. A breach of the latter will expose the current session low of 178.53, ahead of the October 3 swing low of 178.03. Once those levels are taken out, the next support would be a July 28 daily low of 176.31.

If GBP/JPY reclaims the 181.80 area, the pair will turn sideways, awaiting for a fresh catalyst.

GBP/JPY Price Analysis – Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	180.76
Today Daily Change	-4.28
Today Daily Change %	-2.31
Today daily open	185.04

Trends
Daily SMA20	186.61
Daily SMA50	184.21
Daily SMA100	183.76
Daily SMA200	177.53

Levels
Previous Daily High	185.81
Previous Daily Low	184.99
Previous Weekly High	188.53
Previous Weekly Low	186.2
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	185.31
Daily Fibonacci 61.8%	185.5
Daily Pivot Point S1	184.75
Daily Pivot Point S2	184.46
Daily Pivot Point S3	183.93
Daily Pivot Point R1	185.57
Daily Pivot Point R2	186.1
Daily Pivot Point R3	186.38

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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