GBP/JPY Daily Outlook

Daily Pivots: (S1) 205.91; (P) 206.76; (R1) 208.14; More

GBP/JPY's rise from 203.35 was limited below 208.99 resistance and retreats mildly since then. An intraday top could be in place with 4 hours MACD dragged below signal line. Break of 206.29 will confirm this case. Also, it will suggest that consolidation from 208.99 is still in progress and will have another fall to 203.35 support or below before completion. On the upside, above 208.99 will indicate rise from 198.07 has resumed for 210.56/211.22 resistance zone (100% projection of 192.60 to 205.09 from 198.07 at 210.56 and 38.2% retracement of 241.35 to 192.60 at 211.22).

In the bigger picture, while fall from 241.35 has completed at 192.60, there is no confirmation of the completion of whole down trend from 251.09 yet. Focus is now on the structure of the current rise from 192.60 as well as 219.32 medium term support turned resistance. Though, a break of 198.07 is now needed to shift short term bias back to the downside for retesting 192.60 low. Otherwise, further upside is still in favor, at least in short term.

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