Daily Pivots: (S1) 142.92; (P) 143.53; (R1) 144.59; More…
GBP/JPY’s rally accelerates to as high as 147.95 so far and intraday bias stays on the upside for 148.87 resistance next. Decisive break there will pave the way to 156.59 key resistance. On the downside, break of 142.47 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, current rise from 126.54 is seen as the third leg of the consolidation pattern from 122.75 (2016 low). Further rally could be seen but for now, we’d expect strong resistance from 156.59 to limit upside. However, sustained break of 156.59 will indicate long term bullish reversal. On the downside, break of 139.31 support is needed to indicate completion of the rise from 126.54. Otherwise, outlook will stay bullish.
