Daily Pivots: (S1) 134.73; (P) 135.29; (R1) 135.63; More…
GBP/JPY’s decline resumes by breaking 135.08 temporary low and reaches as low as 133.96 so far. Intraday bias is back on the downside. Current fall from 148.87 should target 131.51 low next. On the upside, break of 136.50 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, 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.
