Daily Pivots: (S1) 149.13; (P) 149.60; (R1) 150.42; More…
GBP/JPY’s breach of 150.31 minor resistance suggests that correction from 152.52 has completed at 148.50, ahead of 148.09 cluster support (23.6% retracement of 133.03 to 152.52 at 147.92) as expected. Intraday bias is back on the upside for retesting 152.52 high first. In case of another fall, we’d still expect strong support from 147.92/148.09 to contain downside. But, sustained break of 148.09 will bring deeper correction to 38.2% retracement at 145.07.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Next target is 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.
