GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 172.37; (P) 179.19; (R1) 184.34; More

GBP/JPY recovers after hitting long term trend line support at 174.64. Break of 180.64 indicates that an intraday low is in place and further consolidation could be seen. Nevertheless, upside of recovery is expected to be limited below 188.58 resistance and bring fall resumption. Below 174.03 will indicate decline from 197.42 has resumed for next short term target of 100% projection of 215.87 to 184.47 from 197.42 at 166.02.

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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