GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 143.00; (P) 143.43; (R1) 143.79; More…

GBP/JPY’s break of 142.47 support suggests short term topping at 147.95. Intraday bias is turned back to the downside. Fall from 147.95 is correcting whole rally from 126.54, and should target 38.2% retracement of 126.54 to 147.95 at 139.77. On the upside, above 143.86 minor resistance will turn bias to the upside for retesting 147.95 high instead.

In the bigger picture, rise from 126.54 could either be the third leg of the consolidation pattern from 122.75 (2016 low), or the start of a new up trend. In either case, further rally is expected as long as 139.31 support holds, into 148.87/156.59 resistance zone. Reaction from there should reveal which case it should be in. Rejection from there will extend long term range trading. Decisive break of 156.69 will carry long term bullish implications.