GBP/JPY Daily Outlook

Daily Pivots: (S1) 145.72 (P) 146.04; (R1) 146.53; More…

GBP/JPY is still staying below 146.63 minor resistance despite rally attempt. Intraday bias remains neutral at this point. On the upside, break of 146.63 will turn bias to the upside for 148.10 resistance first. Decisive break there will be a strong signal of near term reversal. Further rally would be seen to 149.99 resistance for confirmation. On the downside, break of 148.13 will extend the fall from 156.59 for 139.25/47 cluster support level.

In the bigger picture, no change in the view that decline from 156.59 is a corrective move. In case of another fall, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. Meanwhile, break of 153.84 should confirm that the correction is completed and target 156.59 and above to resume the medium term up trend.