Daily Pivots: (S1) 137.84; (P) 138.66; (R1) 139.59; More…
GBP/JPY breached 138.53 support but quickly recovered. Current development suggests that deeper fall is underway back to 136.44 support at possibly below. Overall, price actions from 148.42 are viewed as a consolidation pattern. We’d expect 50% retracement of 122.36 to 148.42 at 135.39 to contain downside and bring rebound. On the upside, break of 140.60 resistance will turn bias to the upside and send GBP/JPY through 144.77 resistance.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern. Or, sustained break of 50% retracement of 122.36 to 148.42 at 135.39 will turn outlook bearish for a test on 122.36 low. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement of 195.86 to 122.36 at 167.78.
