GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 142.89; (P) 143.28; (R1) 143.51; More…

GBP/JPY’s rebound from 139.88 resumes after brief consolidation and reaches as high as 144.77 so far. Intraday bias is back on the upside for further rally. Sustained trading above 55 day EMA (now at 144.66) will bring further rise to 149.30 key resistance. On the downside, though, break of 142.81 will suggest that the rebound is completed and bring retest of 139.88 low.

In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the downside acceleration 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).