Daily Pivots: (S1) 139.76; (P) 140.76; (R1) 141.64; More…
GBP/JPY dipped to 139.88 but quickly recovered from there. Intraday bias is turned neutral first. Considering mildly bullish convergence condition in 4 hour MACD, in case of another fall, downside will be contained by 139.29/47 key support level to bring rebound. On the upside, break of 142.46 will indicate short term bottoming and turn bias back to the upside for stronger rebound.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the current downside accelerate makes this view shaky. Focus will be on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).
