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.

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