GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 204.11; (P) 205.97; (R1) 208.25; More

While some volatility is seen in GBP/JPY, choppy consolidation from 208.99 is still underway as the cross is still bounded inside established range of 203.35 and 208.99. On the upside, break of 208.99 will confirm that rise from 198.07 has resumed for 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). Otherwise, further consolidation could still be seen with risk of another fall to below 203.35 before completion.

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 support 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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