Daily Pivots: (S1) 156.95; (P) 157.87; (R1) 158.37; More…
GBP/JPY’s decline from 172.11 resumed by breaking through 158.57 support. Intraday bias is back on the downside for 161.8% projection of 172.11 to 163.02 from 169.26 at 154.55, and then 153.70 fibonacci level. On the upside, above 158.57 will turn intraday bias neutral first. But near term outlook will stay bearish as long as 162.32 resistance holds, in case of recovery.
In the bigger picture, a medium term top was in place at 172.11 on on bearish divergence condition in weekly MACD. Decline from there should target 38.2% retracement of 123.94 to 172.11 at 153.70. Sustained break there will raise the change of trend reversal and target 61.8% retracement at 142.34. Nevertheless, break of 153.02 support turned resistance will argue that the decline has completed, and retain medium term bullishness.
