GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 121.22; (P) 122.03; (R1) 122.67; More

Intraday bias in GBP/JPY remains neutral for the moment and more consolidations could be seen below 122.85 temporary top. But retreat is expected to be contained well above 119.58 support and bring another rise. Above 122.85 will extend the rally from 117.29 towards 100% projection of 117.29 to 122.04 from 119.58 at 124.33. Also, note again that such rise from 117.29 is viewed as the third leg of the consolidation pattern from 116.83 and might take on 127.30 resistance eventually.

In the bigger picture, consolidation from 116.83 is still in progress and fall from 140.20, which is part of the medium term down trend from 163.05, is not ready to resume yet. While rise from 117.29 might extend further higher, we'd expect strong resistance from 50% retracement of 140.02 to 116.83 at 128.42 to finish the consolidation and bring down trend resumption. We will not consider medium term trend reversal yet before sustained trading above 128.42 fibonacci level.

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