GBP/JPY edged higher to 217.45 last week but turned sideway since then. Initial bias remains neutral this week for more consolidations. But further rally is expected as long as 214.80 support holds. On the upside, above 217.45 will extend the rise from 209.55 to retest 219.56 high next.
In the bigger picture, strong rebound above 55 W EMA (now at 209.68) keeps the up trend from 123.94 (2020 low) intact. Firm break of 209.55 should target 100% projection of 148.93 to 208.09 from 184.35 at 243.51. However, sustained break of 55 W EMA will argue that it’s already in a medium term down trend to 184.35 support.
In the long term picture, up trend from 116.83 (2011 low) is in progress. Next target is 251.09 (2007 high). This will remain the favored case as long as 55 M EMA (now at 189.71) holds.
