GBPJPY collapses on a strong BoJ hint from Nikkei

However, that narrative has flipped in New York trade on Thursday and USD/JPY fell from 141.10 to a low of 139.09 when the Nikkei reported ” the Bank of Japan will discuss tweaking its yield curve control policy at a policy board meeting Friday to let long-term interest rates rise beyond its cap of 0.5% by a certain degree, Nikkei has learned, in what would be a shift toward a more flexible policy approach.” Consequently, GBP/JPY has been dragged deeper below trendline resistance as follows: 

GBP/JPY technical analysis

As can be seen, the price is falling but is leaving an M-pattern on the daily chart. A correction is inevitable but we just don’t know when this horse will settle down. 

GBP/JPY H1 chart

We can see a potentially strong area of support in the 177.70/90s as per the hourly structure back in the prior bullish cycle where volumes are starting to deplete. Below there, we have the Point of Control near 177.00 and then a swing support area at 176.50.