GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 144.67; (P) 145.68; (R1) 146.35; More…

GBP/JPY’s fall extends to as low as 144.69 so far and intraday bias remains on the downside for 143.18 low. As noted before, consolidation pattern from 143.18 has completed with three waves up to 149.30 already. Break of 143.18 will extend larger fall from 156.69 to key support level at 139.29/47. On the upside, above 145.53 minor resistance will turn intraday bias remains neutral first. But near term outlook will stay bearish as long as 147.13 resistance holds.

In the bigger picture, decline from 156.59 is seen as 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.