GBP/JPY Daily Outlook

Daily Pivots: (S1) 158.32; (P) 159.15; (R1) 160.10; More

Intraday outlook in GBP/JPY is turned neutral as consolidation from 160.24 extends further. Nevertheless, another rise is still mildly in favor as long as 156.69 minor support holds. Break of 160.24 will target a retest of 162.56 first. 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 153.01).

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 153.01) 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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