GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 146.13; (P) 146.58; (R1) 146.90; More…

GBP/JPY’s rise resumes after brief consolidation and reaches as high as 147.34 so far. Intraday bias is back on the upside. As noted before, whole decline from 156.59 could have completed at 139.88, just ahead of 139.29/47 key support zone. Decisive break of 149.50 resistance will confirm our bullish view. On the downside, below 146.24 minor support will turn intraday bias neutral and bring retreat. But further rally will remain in favor as long as 142.58 support holds.

In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, the decline from 156.69 is seen as corrective move. That is, rise from 122.36 (2016 low), is still expected to extend higher through 156.69. However, sustained break of 139.29/47 should confirm medium term reversal and turn outlook bearish.