GBP/JPY Daily Outlook

Daily Pivots: (S1) 138.95; (P) 140.41; (R1) 142.66; More

GBP/JPY's rise from 131.43 extends further to as high as 144.87 so far and the decisive break of 141.74 resistance confirms that whole rally from 118.81 has resumed. At this point, intraday bias remains ont he upside as long as 141.06 minor support holds. Current rally is expected to extend further towards 100% projection of 118.81 to 141.74 from 131.43 at 154.36 next. On the downside, below 141.06 will turn intraday outlook neutral and bring consolidation. But downside should be contained above 134.94 support and bring rally resumption.

In the bigger picture, GBP/JPY's rally from 118.81 is still in progress to correct the give wave sequence from 215.87 to 118.81. Further rise should be seen towards 38.2% retracement of 215.87 to 118.81 at 155.88 and probably above. Nevertheless, note that such rise is interpreted as having the first wave completed at 141.74, second at 131.43. Strong resistance should be seen between above mentioned fibo resistance levels of 154.36 and 155.88 and bring near term reversal. On the downside, though, below 134.94 support is needed to be the first signal that rise from 118.81 has topped out. Otherwise, short term outlook will remain bullish.

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