GBP/JPY Daily Outlook

Daily Pivots: (S1) 141.63; (P) 142.00; (R1) 142.28; More…

GBP/JPY’s fall is still in progress and intraday bias remains on the downside. The cross is in the third leg of the correction from 147.95. Next target is 38.2% retracement of 126.54 to 147.95 at 139.77. For now, risk will stay on the downside as long as 144.60 resistance holds, in case of recovery.

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. However, sustained break of 139.31 support will dampen this case and turn medium term outlook neutral first.