GBP/JPY Daily Outlook

Daily Pivots: (S1) 170.42; (P) 174.55; (R1) 176.63; More

GBP/JPY's break of 174/34 minor support indicates that rebound from 165.97 has complete. Intraday bias is flipped back to the downside for retesting 165.97 low first. Break will confirm recent down trend has resumed. On the upside, above 178.71 will indicate that rebound from 165.97 is probably still in progress. Nevertheless, upside is still expected to be limited by 184.47 resistance and bring down trend resumption.

In the bigger picture, regardless of the interpretation of the fall from 251.09, the current decline from 215.87 should develop into a five wave decline and should target 148.19 support next. A break above 184.47 support turned resistance is needed to indicate that a medium term bottom is formed and bring larger scale consolidation. Otherwise, medium term outlook will remain bearish even in case of strong rebound.

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