Daily Pivots: (S1) 142.45; (P) 142.91; (R1) 143.55; More
GBP/JPY’s fall from 147.76 is still in progress for trend line support (now at 141.87). Break there will target 135.58/138.65 support zone. As GBP/JPY is seen as staying in consolidation pattern from 148.42, we’d expect strong support from 135.58 to contain downside. On the upside, above 144.20 minor resistance will argue that the decline from 147.76 might be completed. In such case, intraday bias will be turned back to the upside for rebound.
In the bigger picture, rise from medium term bottom at 122.36 is expected to continue to 38.2% retracement of 196.85 to 122.36 at 150.43. Decisive break there will carry long term bullish implications and pave the way to 61.8% retracement at 167.78. In case the sideway pattern from 148.42 extends, we’d be looking for strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside.
