GBP/JPY Daily Outlook

Daily Pivots: (S1) 204.06; (P) 204.60; (R1) 205.08; More

GBP/JPY weakens further today and 4 hours MACD's cross below signal line suggest that recovery has possibly completed. Intraday bias is flipped back tot he downside and break of 202.50 low will indicate recent decline has resumed for mentioned 119.78 target. though, above 205.29 minor resistance will indicate that lengthier consolidation is underway with stronger rebound to above 206.51. But upside should be limited well below 211.58 resistance and bring fall resumption.

In the bigger picture, medium term rebound from 192.60 has completed at 215.87 after being limited below 100% projection of 192.60 to 208.99 from 199.78 at 216.17 as well as 55 weeks EMA, on bearish divergence condition in daily MACD. The three wave structure of rise from 192.60 to 215.87 is consistent with the view that it's merely a correction to the the medium term down trend from 241.35. Break of 199.78 support will confirm this case and bring retest of 192.60 low. On the upside, above 211.58 structure resistance is needed to indicate fall from 215.87 has completed. Otherwise, another decline is still expected even in case of strong rebound.

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