GBP/JPY Daily Outlook

Daily Pivots: (S1) 155.94; (P) 157.09; (R1) 158.05; More.

GBP/JPY's rebound was limited at 158.50 and retreats mildly. At this point, intraday bias is mildly on the upside and further rise might be seen. Break of 159.58 resistance will confirm that fall from 162.56 has completed and will bring retest of this high. However, below 156.10 minor support will suggest that fall from 162.56 is possibly still in progress and will flip intraday bias back to the downside for 154.03 support. Break there will target a test on trend line support at 151.51.

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 154.03 support will starts to argue that such correction has completed at 162.56 already. Sustained trading below channel support (now at 151.51) 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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