GBP/JPY Daily Outlook

Daily Pivots: (S1) 145.07; (P) 145.75; (R1) 146.53; More…

Intraday bias in GBP/JPY remains on the downside. Current fall from 156.59 is in progress for 143.51 medium term fibonacci level next. We’ll look for bottoming signal there. But firm break will target 139.29 support. On the upside, above 147.47 minor resistance will turn intraday bias neutral first. But outlook will remain bearish as long as 150.92 resistance holds, in case of recovery.

In the bigger picture, the case for medium term reversal continues to build up. There is bearish divergence condition in daily MACD. 146.96 support was taken out. And GBP/JPY was rejected by 55 month EMA. Break of 38.2% retracement of 122.36 to 156.59 at 143.51 will pave the way to 61.8% retracement at 135.43 and below. This will now be the preferred case as long as 150.92 resistance holds.

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