Daily Pivots: (S1) 149.91; (P) 150.57; (R1) 151.25; More…
GBP/JPY’s rise from 144.97 gathers further upside momentum as seen in 4 hour MACD. And it reaches as high as 151.45 so far. With 150.92 resistance taken out, intraday bias is on the upside for 61.8% retracement of 156.59 to 144.97 at 152.15 and above. For now, price actions from 144.97 are still seen as corrective looking. Hence, we’ll look for sign of loss of upside momentum as it approaches 156.59 high. However, break of 148.37 is now needed to confirm completion of the rebound. Otherwise, near term outlook will remain cautiously bearish in case of retreat.
In the bigger picture, the outlook is turning mixed again. On the one hand, the cross was rejected by 55 month EMA (now at 154.20) after breaching it briefing. On the other hand, there was no sustainable selling pushing it through 38.2% retracement of 122.36 to 156.59 at 143.51. The most likely scenario is that GBP/JPY is turning into a sideway pattern between 143.51 and 156.59. And more range trading would now be seen before a breakout, possibly on the upside.
