GBP/JPY Daily Outlook

Daily Pivots: (S1) 148.63; (P) 149.77; (R1) 150.47; More…

Intraday bias in GBP/JPY stays on the downside as correction from 152.52 short term top extends. Deeper fall could be seen to 148.09 cluster support ( 23.6% retracement of 133.03 to 152.52 at 147.92). But downside should be contained there to bring rebound. On the upside, break of 150.31 minor resistance will bring retest of 152.52. However, sustained break of 148.09 will bring deeper correction to 38.2% retracement at 145.07.

In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Next target is 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.