Daily Pivots: (S1) 138.91; (P) 139.91; (R1) 140.72; More….
Intraday bias in GBP/JPY remains neutral for consolidation above 138.65 temporary low. Near term outlook stays bearish with 142.75 resistance intact. Fall from 148.09 could still extend lower. In that case, we’d look for bottoming signal around 135.58, which is close to 135.39 fibonacci level, to bring rebound. Break of 142.75, nonetheless, will argue that fall from 148.09 is completed and turn bias back to the upside for this resistance.
In the bigger picture, while the fall from 148.09 is deeper than expected, we’re not bearish in the cross yet. Price action from 148.42 is possibly developing into a sideway pattern with fall from 148.09 as the third leg. Deeper decline could be seen but we’re looking for strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside. Rise from 122.36 is still mildly in favor to resume at a later stage. However, sustained break of 135.58/39 will confirm reversal and target a retest on 122.36 low.
