GBP/JPY Daily Outlook

GBP/JPY Daily Outlook

Daily Pivots: (S1) 143.01; (P) 143.81; (R1) 144.48; More....

Intraday bias in GBP/JPY remains neutral for the moment with focus on 142.00 minor support. Break will indicate that rebound from 137.87 has completed at 145.85. In that case the consolidation pattern from 147.97 should have started the third leg for 38.2% retracement of 118.82 to 147.97 at 136.83 and below. Meanwhile, even in case of another rise, 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.