GBP/JPY Daily Outlook

Daily Pivots: (S1) 201.80; (P) 203.27; (R1) 204.18; More

GBP/JPY's fall from 208.99 continues today and dives further to as low as 201.29 in early European session. At this point, intraday bias remains on the downside as long as 203.48 minor support holds. Focus is now on 198.07 support. Break of which will confirm that whole rebound from 192.60 has completed. More importantly, the corrective structure of such rebound will indicate that it's merely a correction to fall from 241.35 only. In other words, more downside should then be seen to retest 192.60 low first. However, strong rebound above 192.60 will argue that such correction from 192.60 is not completed yet and will probably extend further with risk of another rise to above 208.99 before completion.

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. On resumption, the down trend from 251.09, is in favor to extend further to long term rising trend line support (now at 174.25).

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box