GBP/JPY Daily Outlook

Daily Pivots: (S1) 148.89; (P) 149.18; (R1) 149.48; More…

Consolidation from 147.95 temporary low is still in progress and intraday bias in GBP/JPY remains neutral. In case of another recovery, upside should be limited by 151.19 resistance to bring fall resumption. Break of 147.95 will extend the fall from 156.69 and target 146.96 support next. Considering bearish divergence condition in daily MACD, firm break of 146.96 will be another sign of medium term trend reversal. On the upside, break of 151.19 will indicate short term bottoming and turn bias back to the upside for rebound.

In the bigger picture, the case for medium term reversal continues to build up on loss of medium term momentum as seen in 4 hour MACD. Also, firm break of 146.96 will indicate rejection by 55 month EMA and add to that case of reversal. In that case, deeper fall would be seen to 38.2% retracement of 122.36 to 156.59 at 143.51 and then 61.8% retracement at 135.43. Meanwhile, break of 156.59 will extend the rise from 122.36 to 61.8% retracement of 195.86 to 122.36 at 167.78.

GBP/JPY 4 Hours Chart

GBP/JPY Daily Chart

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