GBP/JPY Daily Outlook

Daily Pivots: (S1) 140.61; (P) 140.96; (R1) 141.19; More…

GBP/JPY’s recovery from 139.88 is so far very weak. Intraday bias remains neutral and consolidation from 139.88 might extend further. Still, as long as 142.46 minor resistance intact, deeper fall is in favor. Sustained break of 139.29/47 key support zone will carry larger bearish implication and target 135.58 support next. Though, break of 142.46 will indicate short term bottoming, on bullish convergence condition in 4 hour MACD. Intraday bias will be turned 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).