GBP/JPY stayed in established range of 140.43/77 last week and outlook is unchanged. Initial bias remains neutral this week first. Overall, price actions from 148.42 are seen as a corrective pattern with first leg completed at 136.44. Break of 140.43 will argue that the second leg is finished too. In such case, intraday bias will be turned back to the downside for 136.44 and below. Meanwhile, break of 144.77 will target a test on 148.42 high next.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern with a test on 122.36 low next. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement at 167.78.
In the longer term picture, while price actions from 122.36 would develop into a medium term correction, fall from 195.86 is still seen as resuming the down trend from 251.09 (2007 high). Hence, after the correction from 122.36 completes we’d expect another fall through 116.83 low.