GBP/JPY Daily Outlook

Daily Pivots: (S1) 203.02; (P) 205.33; (R1) 207.18; More

GBP/JPY's consolidation from 208.99 continues today as expected and is pressing 203.35 support again. At this point, further decline cannot be ruled out as long as 205.63 minor resistance holds. But above 205.63 will be the first signal that consolidation from 208.99 has completed. Focus will then be back to this resistance and break will confirm that 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 support 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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