Daily Pivots: (S1) 141.89; (P) 142.80; (R1) 143.36; More…
GBP/JPY’s breach of 142.33 minor support suggests that recovery from 140.92 has completed at 144.95. Correction from 147.95 might be resuming. Intraday bias is back on the downside for 140.92 first. Break will target 139.31 key support next. On the upside, above 144.95 will turn bias back to the upside for 147.95 instead.
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.
