As Japan's "Golden Week" Holidays loom, with Japanese financial markets shut for 10 days, we are seeing traders cut risk positions in fear of a "flash crash" similar to January, on the back of that we are seeing the Yen gain against the U.S. Dollar.
The Bank of Japan has somewhat tweaked their official guidance, stating that their ultra-accommodative setting will remain "at least" through until spring of 2020. Whilst this may coincide with the slide in GBPJPY the move actually started a couple of hours before, hence the lean towards this being divestment prior to the holiday.
On the technical front, we are on route to testing some support in GBPJPY in the form of the lows from the end of February, the middle of March and the end of March, shown on the chart by the horizontal orange line.
With the in oversold territory and the momentum of the move beginning to wane, we very may well see the price find some support and bounce a little off the level, however, this does depend on the price action that we see in both the USDJPY & GBPUSD . If GBPUSD continues to slide and the Yen continues to strengthen against the dollar then we will definitely see this level tested.
These three crosses will definitely remain firmly in our cross-hairs to see how this plays out.