GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 135.64; (P) 136.05; (R1) 136.55; More…

GBP/JPY’s fall from 142.71 resumes with a firm break of 38.2% retracement of 123.94 to 142.71 at 135.53. Intraday bias is now back on the downside. Current development argues that whole corrective rebound from 123.94 has completed. Further fall would be seen to 61.8% retracement at 131.11 next. On the upside, above 136.58 minor resistance will turn bias neutral and bring consolidations, before staging another fall.

In the bigger picture, rise from 123.94 is still seen as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.

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