Daily Pivots: (S1) 135.94; (P) 136.45; (R1) 137.33; More…
GBP/JPY’s strong break of 137.51 indicates short term bottoming at 135.58, ahead of 135.39 fibonacci level. The consolidation pattern from 148.82 could have completed today. Intraday bias is turned back to the upside for 140.08 resistance first. Break will affirm this case and target a test on 148.42 resistance next. For now, outlook will stays cautiously bullish as long as 135.58 support holds.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. As long as 50% retracement of 122.36 to 148.42 at 135.39 holds, another rising leg would be seen to 38.2% retracement of 195.86 to 122.36 at 150.42 and possibly above. However, firm break of 135.39 will bring retest of 122.36, with prospect of resuming the larger down trend from 195.86.
