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GBP/JPY Attempting a Price Bottom after the BoE Statement

Today, the BoE concluded its 2-day meeting and held the overnight bank rate at its historic low of 0.50%. It also maintained the asset purchase program at £375 billion. The pound gained across the board and GBP/JPY is in an interesting set up. Let's take a look at the chart.

GBP/JPY 4H Chart 2/5

(click to enlarge)

The 4H chart shows that the pair has been consolidating since falling to about 175.75. Since then, we have seen a bit of coiling, or descending triangle forming. After 3 failed attempts to break below 175.75, price remains in consolidation. However, today's price action is starting to shift the trend to the upside.

Now, if price falls back below 178, the bullish breakout is likely false, and the pressure will return towards the 175.75 low, with risk of breaking lower because of the prevailing trend. 

GBP/JPY Daily Chart 2/5
(click to enlarge)

The daily chart shows that GBP/JPY has been consolidating above a key support area involving the 200-day SMA and the 61.8% fibonacci retacement level. This is like the final defense for GBP/JPY bulls. A clear break below 175.75 should open up the downtrend further, but it looks like price is heading higher. 

If price can hold above 178.00 after a break above 180, there could be upside towards 184 - I am using 400-pip range (176-180), and projecting it above 180. We can also see a falling speedline coming down from the 2014-high of 189.71.