GBP/JPY Daily Outlook

Daily Pivots: (S1) 134.57; (P) 135.81; (R1) 137.88; More

GBP/JPY's break of 135.18 minor support suggests that recovery from 132.13 might have completed at 137.33 already. Intraday bias is flipped back to the downside for retesting 132.13 low first. Break will confirm fall resumption to 61.8% projection of 143.59 to 132.13 from 137.33 at 130.24 next. On the upside, above 137.33 will delay the bearish case and bring more recovery. But upside should be limited by 139.21 cluster resistance (38.2% retracement of 150.68 to 132.13 at 139.21, 61.8% retracement of 143.59 to 132.13 at 139.21) and bring fall resumption.

In the bigger picture, while the rebound from 132.13 was strong, there is no change in the bearish outlook. 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 as 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, decisive break of 143.59 cluster resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.

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