GBP/JPY Daily Outlook

Daily Pivots: (S1) 135.91; (P) 136.87; (R1) 138.60; More

GBP/JPY's strong rebound and break of 138.04 indicates that consolidation from 132.13 is still in progress. But after all upside is still expected to be limited by 38.2% retracement of 150.68 to 132.13 at 139.21 and bring fall resumption. Below 135.18 minor support will flip intraday bias back to the downside. Further break of 132.13 low will confirm down trend resumption for 118.81 low.

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 (61.8% retracement of 150.68 to 132.13 at 143.59) is needed to invalidate this view. Otherwise, outlook will remain bearish.

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