Daily Pivots: (S1) 149.91; (P) 150.63; (R1) 151.97; More…
GBP/JPY’s rebound from 148.43 extends to as high as 151.67 so far. Break of 151.8 support turned resistance argues that correction from 156.05 has completed, after defending 38.2% retracement of 136.96 to 156.05 at 148.75. Intraday bias is back on the upside for 153.46 resistance first. Break will bring retest of 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 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.
