GBP/JPY Daily Outlook

Daily Pivots: (S1) 138.07; (P) 139.74; (R1) 141.25; More

Intraday bias in GBP/JPY remains on the downside for the moment and further decline is expected to be seen towards 61.8% retracement of 118.81 to 163.05 at 135.70 next. On the upside, above 141.41 minor resistance will turn intraday bias neutral and bring consolidations. But upside should be limited below 145.26 resistance and bring another fall.

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. Decline from 163.05 is tentatively treated at resumption of the long term down trend from 2007 high of 251.09 and should target a new low below 118.81. On the upside, break of 150.68 resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.

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