GBP/JPY Daily Outlook

Daily Pivots: (S1) 140.90; (P) 141.72; (R1) 142.15; More…

GBP/JPY drops to as low as 140.21 so far. Break of 140.92 confirms resumption of correction form 147.95. Intraday bias is back on the downside for 139.31 key support next. On the upside, above 141.41 minor resistance will turn intraday bias neutral first. But risk will remain on the downside as long as 144.95 resistance holds.

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.