Daily Pivots: (S1) 143.80; (P) 144.44; (R1) 145.28; More…
A temporary low should be in place at 143.18 with today’s recovery. Intraday bias in GBP/JPY is turned neutral for consolidation. Further rise could be seen. But upside should be limited by 147.04 support turned resistance to bring decline resumption. Break of 143.18 will extend the fall from 159.59 to 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next.
In the bigger picture, for now, we’re treating price actions from 156.59 as a corrective move. Therefore, while deeper fall is expected, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. There is still prospect of extending the rise from 122.36. However, considering that GBP/JPY failed to sustain above 55 month EMA (now at 153.94), firm break of 139.29 will confirm trend reversal and turn outlook bearish.
