Daily Pivots: (S1) 154.88; (P) 155.47; (R1) 155.80; More…
GBP/JPY’s break of 154.85 support argues that rebound from 148.94 has completed at 157.74, ahead of 158.19 high. Fall from 157.74 is seen as the third leg of the consolidative pattern from 158.19. Intraday bias is back on the downside. Sustained break of 55 day EMA (now at 154.11) will target 148.94 support next. For now, risk will stay on the downside as long as 157.74 resistance holds, in case of recovery.
In the bigger picture, strong rebound from 148.93 key structural support retains medium term bullishness. Firm break of 158.19 high will resume whole up trend from 123.94 (2020 low), to 61.8% retracement of 195.86 to 122.75 at 167.93. Nevertheless, firm break of 148.93 will bring deeper correction to 38.2% retracement of 123.94 to 158.19 at 145.10, and possibly further lower, as a correction to up trend from 123.94 at least.
