Daily Pivots: (S1) 150.73; (P) 151.32; (R1) 151.84; More
GBP/JPY drops sharply after hitting 151.92 but downside is contained above 148.88 minor support so far. Outlook is unchanged. While choppy recovery from 149.62 could still extend, firm break of 152.82 is needed to confirm medium term rally resumption. Otherwise, consolidative trading from 152.82 should extend with another falling leg. Break of 148.88 minor support will turn bias to the downside through 146.92 to 61.8% retracement of 139.29 to 152.82 at 144.45.
In the bigger picture, medium term rebound from 122.36 is still expected to resume after corrective pull back from 152.82 completes. Firm break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. In that case, GBP/JPY could target 61.8% retracement at 167.78. However, break of 139.29 will indicate rejection from 150.43 key fibonacci level. And the three wave corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
