GBP/JPY Daily Outlook

Daily Pivots: (S1) 155.57; (P) 157.01; (R1) 159.07; More.

GBP/JPY's fall from 162.56 was contained at 154.94 and rebounded strongly. Break of 158.07 resistance indicates that such decline has completed and flips intraday bias back to the upside. With 154.85 support intact, there is no confirmation of reversal and recent rally is possibly still in progress. Further rise should now be seen to retest 162.56 first. On the downside, below 157.34 will turn intraday outlook neutral again.

In the bigger picture, medium term rise from 118.81 is treated as correction to the fall from 215.87 and is expected to conclude in 155.88/167.34 resistance zone (38.2% and 50% retracement of 215.87 to 118.81). Break of 154.85 support will starts to argue that such correction has completed at 162.56 already. Sustained trading below mentioned channel support will add much credence to this case and will likely encourage a retest of 118.81 low at least. However, before that, another rise cannot be ruled out. But after all, we'll continue to look for reversal signal even if such rally will extend.

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