GBP/JPY Daily Outlook

Daily Pivots: (S1) 141.43; (P) 144.65; (R1) 146.30; More

GBP/JPY weakens again after touching 4 hours 55 EMA. With 4 hours MACD dragged below signal line, intraday bias is mildly on the downside for retesting 138.88 low. Break will confirm that recent decline from 165.02 has resumed for 200% projection of 215.87 to 184.47 from 197.42 at 134.62 next. On the upside, though, above 147.62 will argue that consolidation from 139.02 might still be in progress and another rise could be seen to retest 165.02 before completing the consolidation.

In the bigger picture, while there are some interpretations of the structure of the whole decline from 215.87, such decline should remain in progress as long as 181.37 resistance holds. Firm break of 139.02 low will confirm that whole down fall from 215.87 has resumed and towards 129.32 key long term level (95 low). However, touching of 181.37 will argue that fall from 215.87 has completed and lengthier medium term consolidation would be seen before resuming the long term down trend.

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