Daily Pivots: (S1) 151.28; (P) 151.92; (R1) 152.37; More…
Further rise is expected in GBP/JPY as long as 150.76 support holds. Current rise from 123.94 would target 156.59 long term resistance. However, considering bearish divergence condition in 4 hour MACD, break of 150.76 support will indicate short term topping, and turn bias to the downside for pull back.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Next target is 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.
