Daily Pivots: (S1) 134.28; (P) 134.84; (R1) 135.14; More…
GBP/JPY drops sharply today and it’s now pressing 133.85 support. Break will confirm resumption of decline from 148.87 to retest 131.51 low. In case of another recovery, upside should be limited by 136.05 resistance to bring fall resumption eventually.
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.
