GBP/JPY Daily Outlook

Daily Pivots: (S1) 138.50; (P) 139.20; (R1) 139.80; More

With 4 hours MACD crossed above signal line, an intraday low should be in place in GBP/JPY at 138.23. Bias is turned neutral and stronger recovery might be seen. But still, upside is expected to be limited by 143.04 support turned resistance and bring fall resumption. Below 138.23 will target 61.8% retracement of 118.81 to 163.05 at 135.70 next.

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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