GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 169.10; (P) 173.99; (R1) 176.47; More

With 4 hours MACD crossed above signal line, an intraday low is possibly in place. More consolidation could be seen in GBP/JPY above 170.88. However, recovery should be limited by 182.19 resistance and bring fall resumption 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 182.19 will indicate that a short term bottom might be in place and bring lengthier consolidation before resuming the medium term down trend.

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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