GBP/JPY Daily Outlook

Daily Pivots: (S1) 135.81; (P) 139.84; (R1) 142.00; More

GBP/JPY breached 139.02 low and reaches 137.62 before recovering mildly. Short term outlook remains bearish as long as 147.90 resistance holds and further fall is expected to next target of 200% projection of 215.87 to 184.47 from 197.42 at 134.62. 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.

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