GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 140.77; (P) 141.58; (R1) 142.17; More…

GBP/JPY’s fall resumed after brief consolidation and reaches as low as 139.88 so far. Intraday bias is back on the downside. Current decline from 156.59 should target 139.29/47 key support level. We’ll pay attention to bottoming signal around there. But decisive of this support will carry larger bearish implications. On the upside, break of 142.46 will indicate short term bottoming and turn bias back to the upside for stronger rebound.

In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the current downside accelerate makes this view shaky. Focus will be on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).