FX.co ★ GBP/JPY: larger correction in cards

The GBP/JPY pair crashed in the short term as the BOJ is expected to discuss tweaking the yield curve control policy tomorrow. It's trading at 179.44 at the time of writing. The JPY took full control as the Yen Futures rallied.

Fundamentally, the Bank of Japan is expected to keep the BOJ Policy Rate unchanged at -0.10%. Still, the BOJ Press Conference, Monetary Policy Statement, and BOJ Outlook Report could really shake the price.

GBP/USD 179.46 Key Support!

As you can see on the H1 chart, GBP/JPY dropped below the uptrend line signaling that the uptrend ended and that the sellers could take the lead. It's trapped between 182.28 and 179.46 levels in the short term.

The currency pair tried to retest the broken uptrend line before going down. Personally, I've drawn a downtrend line which represents dynamic resistance. As long as it stays below it, the price could hit new lows.

GBP/JPY Outlook!

A valid breakdown below 179.46 activates more declines. So, dropping and stabilizing below this downside obstacle is seen as a selling opportunity. Escaping from this range announces a larger drop.