Daily Pivots: (S1) 136.36; (P) 136.84; (R1) 137.16; More…
A temporary low is formed at 135.58, ahead of medium term fibonacci level at 135.39. Intraday bias in GBP/JPY is turned neutral first. As noted before, we’re viewing price actions from 148.42 as a corrective pattern. Break of 137.51 support turned resistance will turn intraday bias back to the upside. Break of 140.08 resistance will confirm near term reversal. However, sustained break of 135.39 will dampen our view and target next fibonacci level at 132.31.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. As long as 50% retracement of 122.36 to 148.42 at 135.39 holds, another rising leg would be seen to 38.2% retracement of 195.86 to 122.36 at 150.42 and possibly above. However, firm break of 135.39 will bring retest of 122.36, with prospect of resuming the larger down trend from 195.86.
