Daily Pivots: (S1) 131.74; (P) 132.37; (R1) 132.89; More…
A temporary low is formed at 131.61 in GBP/JPY and intraday bias is turned neutral for some consolidations. Upside of recovery should be limited by 135.66 resistance to bring fall resumption. On the downside, decisive break of 131.51 low will resume larger decline from 156.69 for 122.36 next.
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.
