GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 184.63; (P) 186.56; (R1) 188.46; More

GBP/JPY's decline from 197.42 accelerates after taking out 184.47 low decisively and falls sharply to as low as 174.03 in early US session. 61.8% projection of 251.09 to 192.60 from 215.87 at 179.72 is taken out without hesitation. At this point, further decline is expected to next short term target of 100% projection of 215.87 to 184.47 from 197.42 at 166.02 first . On the upside, above 180.64 will indicate that a short term low is possibly in place and bring consolidation. But upside should be limited below 188.58 resistance and bring another fall.

In the bigger picture, 180 psychological support is taken out decisively. GBP/JPY is now pressing long term rising trend line support (129.32, 148.19). Sustained trading below will encourage fall to next medium term target of 100% projection of 251.09 to 192.60 from 215.87 at 157.38 and probably further to 148.19 low. On the upside, above 197.42 is needed to confirm that a medium term bottom is formed. Otherwise, outlook remains bearish.

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