Daily Pivots: (S1) 167.55; (P) 168.66; (R1) 169.47; More…
GBP/JPY dropped notably overnight but recovering after hitting 167.95 resistance turned support. Intraday bias stays neutral first. Further rally could still be seen with 167.95 intact. On the upside, break of 172.30 will resume larger up trend to 100% projection of 148.93 to 172.11 from 155.33 at 178.51. Nevertheless, firm break of 167.95 should confirm short term topping, and turn bias back to the downside for deeper pull back to 165.40 support and possible below instead.
In the bigger picture, based on current momentum, up trend from 123.94 (2020 low) is likely ready to resume. Next target is 161.8% projection of 122.75 (2016 low) to 156.59 (2018 high) from 123.94 at 178.69. This will now remain the favored case as long as 165.40 support holds, in case of retreat.
