Daily Pivots: (S1) 148.92; (P) 149.43; (R1) 150.38; More…

Intraday bias in GBP/JPY remains neutral at this point. Choppy rise from 144.97 is seen as a corrective move. We’d expect strong resistance from 150.92 (50% retracement of 156.59 to 144.97 at 150.78) to limit upside and bring fall resumption. On the downside, below 147.65 minor support will bring retest of 144.97 low first. However, sustained break of 150.92 will indicate near term reversal and pave the way back to retest 156.69 high.

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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