GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 142.79; (P) 143.09; (R1) 143.59; More…

GBP/JPY’s strong rebound and break of 144.20 minor resistance suggests that pull back from 145.67 has completed at 142.58 already. Intraday bias is turned back to the upside for 145.67 first. Break will resume the rebound from 139.88 to 38.2% retracement of 156.59 to 139.88 at 146.26. Decisive break there will be a strong signal that fall from 156.59 has completed at 139.88, ahead of 139.29/47 key support zone. Further rally should then be seen to 149.30 resistance for confirmation. On the downside, though, break of 142.58 will turn focus back to 139.88 low instead.

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