GBP/JPY Daily Outlook

Daily Pivots: (S1) 157.72; (P) 158.99; (R1) 159.79; More

At this moment, further rise is still in favor in GBP/JPY as long as 156.69 minor support holds. Corrective fall from 162.56 should have completed at 154.03 already and retest of this high should be seen. Break will confirm resumption of whole rise from 138.99 and should target 61.8% projection of 143.00 to 162.56 from 154.03 at 166.11. On the downside, however, below 156.96 support will indicate that rebound from 154.03 has completed and fall from 162.56 is still in progress for a test on the medium term channel (now at 152.82).

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). Sustained trading below channel support (now at 152.82) 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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