Daily Pivots: (S1) 138.10; (P) 139.00; (R1) 140.08; More…
GBP/JPY recovers quickly after dipping to 137.90 and intraday bias is turned neutral again. Corrective rise from 133.03 could have completed on bearish divergence condition in 4 hour MACD. The pattern from 142.71 might be starting another falling leg. Break of 137.90 should target 137.19 support first. Firm break there will add more credence to this bearish case and target 133.03/134.40 support zone. This will remain the favored case as long as 140.70 resistance holds, in case of recovery.
In the bigger picture, rise from 123.94 is seen as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.
