GBP/JPY Daily Outlook

Daily Pivots: (S1) 142.37; (P) 142.69; (R1) 142.97; More…

With 141.32 minor support intact, rebound from 139.88 short term bottom is in favor to continue. GBP/JPY be targeting 55 day EMA (now at 144.78). 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).