GBP/JPY Daily Outlook

Daily Pivots: (S1) 145.54; (P) 146.18; (R1) 147.36; More…

As noted before, the break of 38.2% retracement of 156.59 to 139.88 at 146.26 suggests that whole decline from 156.59 has completed at 139.88, just ahead of 139.29/47 key support zone. Intraday bias remains on the upside for 149.30 resistance for confirmation. On the downside, break of 144.66 minor support will dampen the bullish case and turn bias neutral first.

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).