GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 128.05; (P) 130.32; (R1) 131.82; More

GBP/JPY dived to new all time low of 128.78 before recovering mildly. Though, intraday bias remains on the downside as long as 132.71 minor resistance holds. As discussed before, sustained break of mentioned 129.32 long term support will indicate that whole long term down trend has resumed and target next psychological support of 120. On the upside, above 132.71 will flip intraday bias back to the upside and retain the view that price actions from 129.71 are developing as consolidation in the long term down trend.

In the bigger picture, the brief break of 129.71 low dampens the case that a medium term bottom is formed there. Focus remains on 129.32/71 support zone. Sustained break will confirm that whole down trend from 251.09 is still in progress and will target 120 psychological support next. Meanwhile a break above 141.52 will revive prior mentioned case that fall from 215.87 has completed the five wave sequence at 129.71 (184.47, 197.42, 139.02, 165.02, 129.71). Further rebound should then be seen, targeting 162.62/165.02 resistance zone (38.2% retracement of 215.87 to 129.71 at 162.62) before resuming the long term down trend.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box