GBP/JPY rose to 158.19 last week but retreated notably since then. Initial bias is now on the downside this week for pull back towards 55 day EMA (now at 152.90). On the upside, break of 158.19 will resume larger up trend from 123.94.Next target will be 61.8% projection of 136.96 to 156.05 from 148.93 at 160.72.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). The stay above 55 week EMA affirms medium term bullishness. Current rise should now target 61.8% retracement 195.86 (2015 high) to 122.75 at 167.93 next. In any case, outlook will remain bullish as long as 148.93 structural support hold, even in case of deep pull back.
In the longer term picture, GBP/JPY could have set up a long term up trend already with break of 156.69 resistance, and the stay above 55 month EMA. Current rise from 122.75 could target a test on 195.86 (2015 high).
