Daily Pivots: (S1) 142.32; (P) 143.47; (R1) 144.31; More…
Intraday bias in GBP/JPY is turned neutral with the steep fall from 144.95. On the downside, break of 142.33 support will turn bias back to the downside for 140.92 support and below. On the upside, above 144.95 would bring retest of 147.95. Overall, GBP/JPY is staying in consolidation from 147.95 and might extend further in the near term.
In the bigger picture, rise from 126.54 could either be the third leg of the consolidation pattern from 122.75 (2016 low), or the start of a new up trend. In either case, further rally is expected as long as 139.31 support holds, into 148.87/156.59 resistance zone. Reaction from there should reveal which case it should be in. However, sustained break of 139.31 support will dampen this case and turn medium term outlook neutral first.
