Daily Pivots: (S1) 135.31; (P) 135.68; (R1) 136.29; More…

Despite dipping to 135.08, GBP/JPY quickly recovered. Intraday bias is turned neutral again. Outlook will remain bearish as long as 137.78 resistance holds. Break of 135.08 will extend recent decline to 131.51 low next.

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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.

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