Daily Pivots: (S1) 148.68; (P) 149.10; (R1) 149.52; More
Intraday bias in GBP/JPY is turned neutral with the current recovery. At this point, we’re still favoring the case that recovery from 146.92 has completed at 151.92. Another fall is expected and below 148.65 should send GBP/JPY through 146.92. We’d expect strong support from 61.8% retracement of 139.29 to 152.82 at 144.45 to contain downside and bring rebound. On the upside, above 151.92 will retest 152.82 high instead.
In the bigger picture, medium term rebound from 122.36 is still expected to resume after corrective pull back from 152.82 completes. Firm break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. In that case, GBP/JPY could target 61.8% retracement at 167.78. However, break of 139.29 will indicate rejection from 150.43 key fibonacci level. And the three wave corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
