GBP/JPY Daily Outlook

Daily Pivots: (S1) 134.32; (P) 135.11; (R1) 136.32; More

GBP/JPY's break of 135.69 minor resistance turns intraday bias neutral again and argues that consolidation from 132.13 might be still in progress. Another rise cannot be ruled out but after all, 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. Break of 132.13 will target 61.8% projection of 143.59 to 132.13 from 137.33 at 130.24 next.

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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