Daily Pivots: (S1) 151.06; (P) 151.59; (R1) 152.49; More…
GBP/JPY’s rise resumed after brief retreat and reaches as high as 152.50 so far. Intraday bias is back on the upside. Current rebound from 144.97 would extend towards 156.59 high. Nonetheless, as such rise is viewed as a correction, we’ll look for sign of loss of upside momentum as it approaches 156.59 high. On the downside, below 151.15 minor support will turn intraday bias neutral first. But further rally is expected as long as 150.58 resistance turned support holds.
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.
