GBP/JPY Daily Outlook

Daily Pivots: (S1) 210.54; (P) 211.30; (R1) 211.81; More

GBP/JPY continues to be bounded in choppy sideway trading between 209.39 and 212.32 today. At this point, there is no signal on completiong of fall from 213.91 yet. Outlook remains neutral for the moment. On the one hand, failure to sustain above 213.48 key medium term resistance, and bearish divergence conditions in 4 hours MACD and RSI argues that at least a short term top is possibly in place. Hence firm break above 213.91 is now needed to revive short term bullishness. Otherwise, risk remains mildly on the downside. On the other hand, with mentioned rising trend line support (now at 209.02) remains intact, there is no confirmation of a near term reversal yet.

In the bigger picture, a medium term bottom is in place at 192.60. Subsequent rise from there is probably still in progress. Sustained trading above 213.48 resistance indicate that whole down trend from 251.09 is probably over and will bring stronger rally towards 221.25 support turned resistance. On the downside, break of the mentioned short term trendline support will be the first signal that rally from 192. 60 has completed. Further break of 199.78 support confirm such case, and focus will be back to 192.60 low.

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