Daily Pivots: (S1) 138.58; (P) 139.33; (R1) 140.59; More…
GBP/JPY’s decline resumed by taking out 139.59 and intraday bias is back on the downside. Focus is now on 139.29/47 key support zone. Decisive break there will carry larger bearish implication. 135.43 long term fibonacci level will be next target. On the upside, though, break of 140.94 resistance will be the first sign on near term reversal. Intraday bias will be turned back to the upside for 143.93 resistance first.
In the bigger picture, focus is now on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Decisive break will confirm completion of up trend from 122.36 (2016 low). GBP/JPY should target 61.8% retracement at 135.43. Sustained break will pave the way back to 122.36 low. Nevertheless, strong rebound from current level, followed by 142.76 support turned resistance will retain medium term bullishness.
