Daily Pivots: (S1) 141.79; (P) 142.68; (R1) 143.30; More…
GBP/JPY’s consolidation from 144.84 is still in progress and intraday bias remains neutral. On the upside, above 144.84 will extend the rebound from 131.51. But we’d expect strong resistance from trend line (now at 147.13) to limit upside, at least on first attempt. On the downside, firm break of 140.62 will suggest completion of the rebound and turn bias to the downside.
In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline is turn argues that it’s the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.38 will pave the way to 156.59 resistance and above.
