GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.58; (P) 143.05; (R1) 143.65; More....
There was no follow through selling in GBP/JPY so far. But we're favoring the case that rebound from 137.87 has finished at 145.85 already. Fall from there is viewed as the third leg of the consolidation pattern from 147.97. Deeper decline would be seen to 38.2% retracement of 118.82 to 147.97 at 136.83 and below. Above 145.85 will bring another rise. But still, firm break of 147.97 is needed to confirm resumption of recent rally. Otherwise, risk of another fall remains as consolidation from 147.97 would continue.
In the bigger picture, medium term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long term down trend from 251.09 (2007 high). But rise from 116.83 should at least be a move at the same degree as fall from 163.05. Thus, medium term rise is now expected back to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.