Daily Pivots: (S1) 135.66; (P) 136.42; (R1) 137.33; More…
GBP/JPY’s break of 137.88 temporary suggests rally resumption. Intraday bias is back on the upside. Rise from 126.54 should target 61.8% retracement of 148.84 to 126.54 at 140.33. Firm break there will pave the way to 148.87 resistance next. On the downside, break of 136.44 minor support will turn intraday bias neutral again and bring consolidations before staging another rally.
In the bigger picture, consolidation pattern from 122.75 (2016 low) is still in progress with rise from 126.54 as the third leg. Further rise should be seen back to 148.87/156.59 resistance zone. For now, we’d expect strong resistance from there to limit upside. And, this will remain the favored case as long as 130.42 support holds.
