Daily Pivots: (S1) 143.92; (P) 144.33; (R1) 144.89; More…
GBP/JPY’s rally resumed after brief retreat and reaches as high as 145.97 so far. Intraday bias is back on the upside for further 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, break of 143.78 minor support will turn bias to the downside for 141.00 support. However, sustained break of the trend line will target 149.48 resistance next.
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 149.48 will pave the way to 156.59 resistance and above.
