Daily Pivots: (S1) 152.12; (P) 152.93; (R1) 154.53; More…
Intraday bias in GBP/JPY is turned neutral with the strong rebound from 151.28. Correction from 156.05 could still extend lower. Below 151.28 will target 38.2% retracement of 136.96 to 156.05 at 148.75. We’d expect strong support from there to bring rebound. On the upside, sustained break of 154.10 support turned resistance should argue that the correction has completed. Intraday bias will be turned back to the upside for retesting 156.05 high.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Focus is now on 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. Next target is 61.8% retracement of 195.86 (2015 high) to 122.75 at 167.93. On the downside, break of 149.03 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.
