Daily Pivots: (S1) 148.55; (P) 149.32; (R1) 150.11; More
We’re slightly favoring the case that fall from 151.92 is extending as the third leg of the correction pattern from 152.82. Intraday bias stays on the downside for 146.92 support and below. At this point, 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 150.31 will turn bias back to the upside to 151.92 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.
