GBP/JPY Daily Outlook

Daily Pivots: (S1) 143.73; (P) 144.45; (R1) 145.08; More

GBP/JPY's recovery from 143.04 might still be in progress and further recovery cannot be ruled out. But after all, we'll hold on to the bearish view as long as 147.25 resistance holds. That is, choppy rise from 139.26, as well as the three wave consolidation pattern from 139.69, has completed at 150.68 already. Below 143.82 will flip intraday bias back to the downside. Further break of 143.04 will bring fall resumption to retest 139.26 low eventually.

In the bigger picture, medium term rebound from 118.18, which is a correction to the long term down trend from 07 high of 251.90, has completed at 163.05 already. Fall from 163.05 is possibly resuming as consolidation pattern from 139.69 has likely finished at 150.68 already. Break of 139.26 will confirm this bearish case and target 61.8% retracement of 118.81 to 163.05 at 135.70 next. Break will further affirm the case that whole down trend from 2007 high of 251.90 is resuming for another low below 118.81. This will remain the preferred view as long as 150.68 resistance holds.

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