Daily Pivots: (S1) 145.82; (P) 147.67; (R1) 148.62; More…
Intraday bias in GBP/JPY remains on the downside as fall from 156.59 is in progress. Considering bearish divergence condition in daily MACD, firm break of 146.96 will be another sign of medium term trend reversal. And GBP/JPY should target 143.51 medium term fibonacci level next. On the upside, break of 150.92 resistance is needed to confirm short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, the case for medium term reversal continues to build up on loss of medium term momentum as seen in weekly MACD. Also, firm break of 146.96 will indicate rejection by 55 month EMA (now at 154.60) and add to that case of reversal. In that case, deeper fall would be seen to 38.2% retracement of 122.36 to 156.59 at 143.51 and then 61.8% retracement at 135.43. Meanwhile, break of 156.59 will extend the rise from 122.36 to 61.8% retracement of 195.86 to 122.36 at 167.78.
