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

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  • 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.

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

 

 

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