Daily Pivots: (S1) 143.92; (P) 144.33; (R1) 144.89; More…
Intraday bias in GBP/JPY remains neutral and another rise is mildly in favor. On the upside, break of 144.85 resistance suggests resumption of rebound from 131.51. Break of 145.04 will extend the rally. But we’d expect strong resistance from trend line (now at 146.75) to limit upside, at least on first attempt. On the downside, firm break of 141.00 support will suggest completion of the rebound and turn bias to the downside.
In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline is turn argues that it’s the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.38 will pave the way to 156.59 resistance and above.
