GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 146.28; (P) 146.77; (R1) 147.53; More…

GBP/JPY’s was rejected by 4 hour 55 EMA and intraday bias is turned neutral first. As long as 145.67 resistance turned support holds, price actions from 149.70 are still viewed as a correction. Above 147.57 will turn bias back to the upside again for 149.70. Break of 149.70 will confirm resumption of whole rise from 139.88. However, firm break of 145.67 will suggest that the rebound from 139.88 has completed and turn near term outlook bearish again.

In the bigger picture, current development suggests that GBP/JPY has successfully defended 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). And, the rally from 122.36 (2016 low) is still intact. Such medium to long term rise would extend through 156.96 high. This will now be the preferred case as long as 145.67 near term support holds. However, break of 145.67 will turn focus back to 139.29/47 key support zone.