Daily Pivots: (S1) 134.06; (P) 134.44; (R1) 135.04; More…
GBP/JPY is losing some downside momentum. But further decline is expected with 136.05 resistance intact. Current fall from 148.87 should target 131.51 low next. Though, break of 126.05 will indicate short term bottoming and bring stronger rebound to 137.78 resistance and above.
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.
