GBP/JPY Daily Outlook

GBP/JPY Daily Outlook

Daily Pivots: (S1) 166.65; (P) 167.45; (R1) 168.90; More.....

Intraday bias in GBP/JPY remains mildly on the upside for 169.13 near term resistance. Break will resume the larger rally and would target 161.8% projection of 147.61 to 159.98 from 156.63 at 173.72. Nonetheless, failure to break through 169.13, followed by break of 165.86 will bring another decline to extend the consolidation from 169.13.

In the bigger picture, there is no clear sign of topping and indeed, the cross might be building upside momentum again. We'd be cautious on resistance from 38.2% retracement of 251.09 to 116.83 at 168.11 to bring medium term topping. But sustained break there will pave the way to 50% retracement at 183.96 and above.