Daily Pivots: (S1) 135.60; (P) 135.82; (R1) 136.16; More…
Intraday bias in GBP/JPY remains neutral at this point. Some consolidations could be seen above 135.17 temporary low first. Upside of recovery should be limited by 137.78 resistance to bring fall resumption. Break of 135.17 will resume the fall from 148.87 and target 131.51 low next.
In the bigger picture, current development suggests that GBP/JPY’s medium term fall from 156.59 (2018 high) is still in progress. Break of 131.51 will target 122.36 (2016 low). Structure of such decline is corrective looking so far, arguing that it’s just the second leg of consolidation from 122.36. Thus, we’d expect strong support from 122.36 to contain downside to bring reversal.
