GBP/JPY Daily Outlook

Daily Pivots: (S1) 147.10; (P) 147.83; (R1) 148.33; More…

Despite losing upside momentum, further is still in favor in GBP/JPY with 146.24 minor support intact. Current rally should target 149.50 resistance. Decisive break there will confirm our bullish view that decline from 156.59 has completed at 139.88. On the downside, below 146.24 minor support will bring deeper pull back. But outlook will remain cautiously bullish 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.