GBP/JPY Daily Outlook

Daily Pivots: (S1) 199.64; (P) 200.26; (R1) 201.41; More

GBP/JPY's consolidation continues today and strengthens mildly. Nevertheless, upside is still limited by short term falling channel as well ass 201.87 minor resistance, outlook remains unchanged. Fall from 205.09 should still be in force. Break of 198.07 will indicate that fall from 205.09 has resumed. Further break of 196.83 will confirm that rise from 192.60 has completed at 205.09 after meeting short term channel resistance. The corrective nature reaffirm the case the whole decline from 241.35 is still in force. In such case, retest of 192.60 low should be seen first.

In the bigger picture, whole up trend from 148.19 should have ended at 251.09 already. With GBP/JPY still staying inside the short term falling channel, fall from 241.35 should still be in force, so is the down trend from 251.09. GBP/JPY is still expected to visit 190 psychological level, which is close to 161.8% projection of 251.09 to 219.32 from 241.35 at 189.94. Decisive break will set the stage for further decline towards the long term rising trend line support (now at 174.25).

However, note than sustained trading above the mentioned short term channel resistance (now at 201.37), followed by break of 205.09 resistance will confirm that fall from 241.35 has completed and a medium term bottom is likely in place. Stronger rebound should then be seen to 219.32 support turned resistance.

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