Daily Pivots: (S1) 148.80; (P) 150.22; (R1) 151.09; More…
GBP/JPY’s fall from 156.05 resumed by breaking 150.64 and hit as low as 149.30 so far. Intraday bias is back on the downside for 38.2% retracement of 136.96 to 156.05 at 148.75. We’d continue to look for strong support from there to bring rebound. But sustained break there will argue that it’s corrective whole up trend from 123.94, and target 142.71 resistance turned support next. On the upside, above 150.64 resistance will turn intraday bias neutral first.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Focus remains 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, sustained break of 149.03 support, however, will argue that rise from 123.94 has completed. Further break of 142.71 would open up the bearish case for retesting 122.75 low.
