Daily Pivots: (S1) 154.54; (P) 155.24; (R1) 155.62; More…
Intraday bias in GBP/JPY is turned neutral with current retreat. But further rally is expected with 153.81 support intact. Current up trend should target 156.59 long term resistance. Sustained break there will pave the way to 61.8% projection of 133.03 to 153.39 from 149.03 at 161.61. However firm break of 153.81 will indicate short term topping and turn bias back to the downside for deeper pull back.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Focus is now on 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. Next target is 61.8% retracement of 195.86 (2015 high) to 122.75 at 167.93. On the downside, break of 149.03 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.
