Despite edging higher to 169.26 last week, GBP/JPY quickly reversed. Initial bias remains neutral this week first. On the downside, break of 164.02 support will resume the whole fall from 172.11 through 163.02 support. On the upside, above 169.26 will target a retest on 172.11 high.
In the bigger picture, medium term upside momentum has been diminishing as seen in bearish divergence condition in weekly MACD. Sustained break of 55 week EMA (now at 161.09) will argue that it’s already correcting whole up trend from 123.94 (2020 low). Nevertheless, before that, such up trend could still extend through 172.11 high.
In the longer term picture, as long as 55 month EMA (now at 152.38) holds, rise from 122.75 could still extend higher at a later stage.
