GBP/JPY drops to eight-week low on bearish BoJ comments

Following BoJ Ueda’s remarks, the GBP/JPY pair fell, trading at 180.69 after hitting an eight-week low at 178.53. Technical change to bearish; additional confirmation will come from a daily close at roughly 181.80.

The BoJ Governor Ueda’s remarks caused the GBP/JPY to fall by more than 2.30%. The pair eventually reached an eight-week low of 178.53 before turning back towards the current exchange rate. The cross has pared some of its losses and is currently trading at 180.69.

Technically speaking, the pair has moved in a bearish direction, but it has yet to register a daily close, which could allow for more losses. The downtrend was capped when the GBP/JPY broke through a five-month-old support trendline as it headed south.

The GBP/JPY’s bearish bias would be confirmed if it closes the day below the Kumo’s bottom, which was last observed at 181.80/85. The first support can be seen at the 180.00 mark as of this writing.

A break of the latter will reveal the session low of 178.53, which is currently in place, ahead of the swing low of 178.03 on October 3. The next level of support would be the daily low of 176.31 on July 28 if those levels were broken. Should GBP/JPY recover the 181.80 zone, the pair will veer to one side while it waits for new support.