GBP/JPY Daily Outlook

Daily Pivots: (S1) 210.85; (P) 211.37; (R1) 212.18; More

No change in GBP/JPY's outlook as choppy sideway trading continues and the cross is still bounded in tight range between 209.39 and 212.32. The corrective nature of price actions from 209.39 argues that it's merely consolidation to the fall from 213.91 only. Also, as mentioned before, 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. Below 209.39 will indicate that such decline from 213.91 has resumed for 203.96 support first. On the upside, above 212. 32 will encourage a retest of 231.91 high. Nevertheless, firm break above 213.91 is needed to revive short term bullishness. Otherwise, risk remains mildly on the downside.

In the bigger picture, a medium term bottom is in place at 192.60. At this moment, there is no confirmation of completion of the rebound from there yet. Though, break of the mentioned short term trend line support will be the first signal that rally from 192. 60 has finished. Further break of 199.78 support confirm such case, and focus will be back to 192.60 low. On the upside, above 213.91 will confirm the such rebound is still in progress towards 221.25 medium term support turned resistance.

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