GBP/JPY Daily Outlook

Daily Pivots: (S1) 191.50; (P) 192.79; (R1) 193.66; More

GBP/JPY recovers mildly after dipping to 191.44 earlier today. With 4 hours MACD crossed above signal line, an intraday low should be in place and further consolidation could be seen. Nevertheless, consolidation should be relatively brief as lon gas 196.82 holds. Break of 191.44 will indicate recent fall has resumed for 190 190 psychological support first. However, break of 196.82 will argue that a short term bottom is finally in place and bring stronger rebound towards 202.50 support turned resistance.

In the bigger picture, medium term correction from 192.60 has completed at 215.87, after being limited by 55 week EMA. Whole down trend from 251.09 is resuming with 55 weeks MACD now crossed low signal line and should be targeting 190 psychological support first. Break will target 61.8% projection of 251.09 to 192.60 from 215.87 at 179.72 (close to 180 psychological support). Medium term outlook will remain bearish as long as 215.87 resistance holds.

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