Daily Pivots: (S1) 134.28; (P) 134.84; (R1) 135.14; More…
GBP/JPY’s break of 133.85 indicates resumption of whole decline from 148.87. Intraday bias is back on the downside for 131.51 low next. On the upside, break of 135.66 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, 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.
