Daily Pivots: (S1) 135.71; (P) 136.32; (R1) 136.65; More…
GBP/JPY drops to as low as 135.53 so far today. Intraday bias remains on the downside at this point. Current decline from 148.87 should extend to retest 131.51 low. On the upside, break of 138.32 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development suggests that GBP/JPY’s medium term fall from 156.59 (2018 high) is still in progress. Break of 131.51 will target 122.36 (2016 low). Structure of such decline is corrective looking so far, arguing that it’s just the second leg of consolidation from 122.36. Thus, we’d expect strong support from 122.36 to contain downside to bring reversal.
