GBP/JPY Daily Outlook

Daily Pivots: (S1) 146.87; (P) 147.33; (R1) 147.85; More…

GBP/JPY’s rebound from 143.76 resumed after steep but brief retreat. But upside is limited below 148.10 resistance and momentum is unconvincing as seen in 4 hour MACD. Intraday bias remains neutral first. On the upside, break of 1481.0 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 145.17 will confirm completion of rebound from 143.76. Intraday bias will be turned back to the downside for retesting 143.17 low. Break will resume the fall from 156.59.

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.