GBP/JPY’s rebound from 209.55 extended higher last week after brief consolidations. Initial bias is on the upside this week. Current development suggests that corrective fall from 219.56 has already completed. Sustained break of 61.8% retracement of 219.56 to 209.55 at 215.73 will pave the way to retest 219.56 high. On the downside, below 214.51 minor support will turn bias neutral again first.
In the bigger picture, strong rebound above 55 W EMA (now at 208.91) keeps the up trend from 123.94 (2020 low) intact. Firm break of 209.55 should target 100% projection of 148.93 to 208.09 from 184.35 at 243.51. However, sustained break of 55 W EMA will argue that it’s already in a medium term down trend to 184.35 support.
In the long term picture, up trend from 116.83 (2011 low) is in progress. Next target is 251.09 (2007 high). This will remain the favored case as long as 55 M EMA (now at 189.71) holds.
