GBP/JPY’s fall from 188.63 accelerated to as low as 178.58 last week, but recovered after breaching 23.6% retracement of 148.93 to 188.63 at 179.26 briefly. Initial bias is turned neutral this week for consolidations first. Upside of recovery should be limited below 184.44 support turned resistance to bring another decline. Break of 178.58 will target 38.2% retracement at 173.46 next.
In the bigger picture, price actions from 188.63 medium term top are currently seen as a correction to the up trend from 148.93 (2022 low) only. As long as 172.11 resistance turned support holds, larger up trend from 123.94 (2020 low) is still in favor to resume through 188.63 at a later stage.
In the longer term picture, rise from 122.75 (2016 low) in still in progress but started losing upside momentum as seen in W MACD. Further rise will remain in favor, though, as long as 172.11 support holds, to retest 195.86 (2015 high).
