Daily Pivots: (S1) 151.74; (P) 152.23; (R1) 152.55; More…
GBP/JPY’s sharp decline and break of 150.60 support indicate resumption of fall from 153.84. Intraday bias is back on the downside for 148 .37 support first. Break will bring retest of 144.97 low. On the upside, break of 152.71 resistance is needed to indicate completion of the decline. Otherwise, near term outlook will remain cautiously bearish in case of recovery.
In the bigger picture, price actions from 156.59 are viewed as a corrective pattern. For now, we’d expect at least one more fall for 38.2% retracement of 122.36 to 156.59 at 143.51 before the consolidation completed. Though, firm break of 156.59 will resume whole up trend from 122.36 (2016 low) to 50% retracement of 195.86 (2015high) to 122.36 at 159.11 next.
