GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 185.78; (P) 190.61; (R1) 193.17; More

GBP/JPY recovers after diving to as low as 186.42. An intraday low might be in place and some consolidation could now be seen. Nevertheless, fall from 197.42 is still expected to continue as long as 193.13 minor resistance holds. Below 186.42 will bring retest of 184.47 low first. Though, above 193.13 will turn outlook mixed and argue correction from 184.47 is possibly still in progress.

In the bigger picture, whole down trend from 251.09 has resumed after corrective rebound from 192.60 was limited at 215.87 by 55 weeks EMA. Such decline is expected to extend further to 61.8% projection of 251.09 to 192.60 from 215.87 at 179.72 (close to 180 psychological support) first. While some more correction cannot be ruled out in near term, medium term outlook will remain bearish as long as 215.87 resistance holds.

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