GBP/JPY Daily Outlook

Daily Pivots: (S1) 153.54; (P) 155.53; (R1) 157.42; More

GBP/JPY is still bounded in range of 153.43 and 157.47 and intraday outlook remains neutral for the moment. Some more consolidation cannot be ruled out. But after all, even in case of another rise, upside is expected to be limited below 160.34 resistance and bring fall resumption. As noted before, rise from 146.75 has completed with bearish divergence conditions in 4 hours MACD and RSI. Below 153.43 will bring fall resumption to retest 146.75 key support level.

In the bigger picture, the case of topping continues to build up with bearish divergence condition seen in daily MACD and RSI. As discussed before, rise from 118.81 is treated correction to the larger down trend from 07 high of 251.90 only. Sustained break of trend line support (now at 153.94) will be an initial alert that such correction has completed. Break of 146.75 support will confirm and will turn outlook bearish for 118.81 low eventually. At this moment, there is no confirmation of reversal yet. But even in case of another rise, upside is expected to be limited by 50% retracement of 215.87 to 118.81 at 167.34 to conclude such correction and bring reversal.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box