GBP/JPY Daily Outlook

Daily Pivots: (S1) 142.23; (P) 142.52; (R1) 143.04; More…

With 141.32 minor support intact, rebound from 139.88 short term bottom could extend higher to 55 day EMA (now at 144.86). However, on the downside, below 141.32 minor support will likely 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).