Daily Pivots: (S1) 146.13; (P) 146.58; (R1) 146.90; More…
Intraday bias in GBP/JPY remains neutral for consolidation below 147.00 temporary top first. Current development argues that whole decline from 156.59 has completed at 139.88, just ahead of 139.29/47 key support zone. Break of 147.00 will target 149.30 key resistance for confirming our bullish view. On the downside, break of 142.58 support is needed to confirm completion of the rebound from 139.88. Otherwise, further rise remains in favor even in case of deep retreat.
In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, the decline from 156.69 is seen as corrective move. That is, rise from 122.36 (2016 low), is still expected to extend higher through 156.69. However, sustained break of 139.29/47 should confirm medium term reversal and turn outlook bearish.
