GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 204.07; (P) 206.51; (R1) 209.48; More

GBP/JPY's pull back from 208.99 was contained at 203.35, supported by 203.54 as expected and rebounds strongly. Break of 205.64 minor resistance indicates that an intraday bottom is in place. Bias is shifted back to the upside for retest of 208.99 resistance. As discussed before, success break of short term falling channel resistance and 205.09 resistance confirms that decline from 241.35 has already completed at 192.60. Further rally is expected to 210.56/211.22 resistance zone (100% projection of 192.60 to 205.09 from 198.07 at 210.56 and 38.2% retracement of 241.35 to 192.60 at 211.22). However, below 203.35 again will indicate fall from 208.99 has resumed and will put 198.07 support back into focus.

In the bigger picture, while fall from 241.35 has completed at 192.60, there is no confirmation of the completion of whole down trend from 251.09 yet. Focus is now on the structure of the current rise from 192.60 as well as 219.32 medium term support turned resistance. Though, a break of 198.07 is now needed to shift short term bias back to the downside for retesting 192.60 low. Otherwise, further upside is still in favor, at least in short term.

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