GBP/JPY Daily Outlook
Daily Pivots: (S1) 129.05; (P) 129.39; (R1) 129.65; More...
Intraday bias in GBP/JPY remains on the upside for the moment. Sustained break of 129.64 resistance will confirm resumption of whole rise from 118.82 and should target upper channel resistance (now at 131.20) next. On the downside, below 128.25 minor support will turn bias neutral and bring consolidations. But retreat should be contained well above 125.67 support and bring another rise.
In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 (2011 low) are corrective in nature so far. Rise from 118.82 could be the third leg of the pattern from 116.83 and might target 133.48 and above. After all, the likely scenario is that we'll see more range trading between 116.83 and 140.02 (50% retracement of 163.05 to 116.83 at 139.94) ahead, before an eventual downside breakout. We'll favor this view as long as 140.02 resistance holds.