Daily Pivots: (S1) 141.46; (P) 142.00; (R1) 142.41; More…
GBP/JPY drops further today but stays in consolidation above 141.17 support. Intraday bias remains neutral first. In case of another recovery, upside should be limited by 144.02 support turned resistance to bring fall resumption. On the downside, below 141.17 will resume the fall from 149.70 and target 139.29/47 key support zone. However, considering bullish convergence condition in 4 hour MACD, decisive break of 144.02 will suggest near term reversal. Stronger rally should then be seen to 55 day EMA (now at 144.73) and above.
In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) could still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish. In that case, next target is 61.8% retracement at 135.43.
