GBP/JPY Daily Outlook

Daily Pivots: (S1) 141.07; (P) 141.88; (R1) 143.10; More…

Break of 142.46 minor resistance suggests short term bottoming at 139.89. Intraday bias is back on the upside for further rebound to 4 hour 55 EMA (now at 144.92). On the downside, below 141.32 minor support will extend larger down trend and turn focus back to 139.29/47 key support zone instead.

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).