Daily Pivots: (S1) 144.32; (P) 144.88; (R1) 145.28; More….
GBP/JPY’s recovery was limited below 145.78 resistance and drops sharply. Focus is now on 143.34 support. Break there will extend the whole decline from 148.09 to 61.8% retracement of 135.58 to 148.09 at 140.35. At this point, we’d still expect rebound from 122.36 to resume later. Hence, we’d look for strong support below 140.35 to contain downside and bring rebound. Ob the upside, above 145.78 will turn bias back to the upside for retesting 148.09 first.
In the bigger picture, based on current momentum, rise from 122.36 bottom should be developing into a medium term move. Break of 38.2% retracement of 195.86 to 122.36 at 150.42 should pave the way to 61.8% retracement at 167.78. This will now be the favored case as long as 135.58 support holds.
