Daily Pivots: (S1) 131.07; (P) 131.60; (R1) 131.93; More…

With 129.91 minor support intact, corrective rebound from 126.54 short term bottom could extend higher. But upside should be limited by 38.2% retracement of 148.87 to 126.54 at 135.07. On the downside, below 129.91 minor support will turn bias back to the downside for retesting 126.54.

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In the bigger picture, outlook remains clearly bearish with GBP/JPY staying well below 55 week and 55 month EMA. Medium term fall from 156.59 (2018 high) is still in progress. Next target is 122.75 (2016 low). We’d be cautious on bottoming there. But break of 135.66 resistance is needed to be the first sign of reversal. Sustained break of 122.36 will target next key level at 116.83 (2011 low).

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