Daily Pivots: (S1) 138.03; (P) 138.93; (R1) 139.46; More…
GBP/JPY’s break of 137.90 support revives the case that corrective rise from 133.03 has completed. Intraday bias is back on the downside. Break of 137.19 support will further affirm this case, and target 134.40 support next. This will now remain the favored case as long as 140.70 resistance holds.
In the bigger picture, rise from 123.94 is 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.
