GBP/JPY Daily Outlook

Daily Pivots: (S1) 171.14; (P) 174.31; (R1) 180.01; More

GBP/JPY's break of 176.39 resistance confirms that a short term bottom is in place at 165.97 after meeting 100% projection of 215.87 to 184.47 from 197.42 at 166.02. At this point, intraday bias remains on the upside as long as 174.34 minor support holds and further rebound could be seen. But upside should be limited by 184.47 resistance and bring down trend resumption. Below 174.34 will flip intraday bias back to the downside for retesting 165.97 low first.

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 larger scale consolidation. Otherwise, medium term outlook will remain bearish even in case of strong rebound.

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