Daily Pivots: (S1) 145.27; (P) 146.58; (R1) 147.34; More…
GBP/JPY drops to as low as 145.81 so far and focus is now on 145.67 resistance turned support. Decisive break there will suggests that whole rebound form 139.88 has completed. In that case, near term outlook will be turned bearish for 139.88 low again. On the upside, though, above 147.17 minor resistance will reaffirm the case that price actions from 149.70 are merely corrective. And intraday bias will be turned back to the upside for retesting 149.70.
In the bigger picture, current development suggests that GBP/JPY has successfully defended 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). And, the rally from 122.36 (2016 low) is still intact. Such medium to long term rise would extend through 156.96 high. This will now be the preferred case as long as 145.67 near term support holds. However, break of 145.67 will turn focus back to 139.29/47 key support zone.
