GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 168.14; (P) 172.26; (R1) 174.71; More

GBP/JPY's rebound from 165.97 extends further to as high as 175.62 so far. But still there is no confirmation of a short term bottom yet. Below 171.71 will flip intraday bias back to the downside for retesting 165.97 low. Sustained break of 100% projection of 215.87 to 184.47 from 197.42 at 166.02 will encourage further fall to next projection level of 100% projection at 146.41, which is close to 148.19 medium term support. On the upside, though, above 176.39 will indicate that a short term bottom is formed and bring lengthier consolidation before staging another fall.

In the bigger picture, regardless of the interpretation of the fall from 251.09, the current decline from 215.87 should develop into a five wave decline and should target 148.19 support next. A break above 184.47 support turned resistance is needed to indicate that a medium term bottom is formed and bring consolidation larger scale consolidation. Otherwise, medium term outlook will remain bearish even in case of strong rebound.

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