Daily Pivots: (S1) 143.92; (P) 145.06; (R1) 145.80; More…
Intraday bias in GBP/JPY remains mildly on the downside for 38.2% retracement of 131.51 to 148.57 at 142.05. Break will target 141.00 key support level. Nevertheless, on the upside, break of 146.18 minor resistance will indicate completion of the pull back and turn bias to the upside for 148.57.
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 in 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. However, firm break of 141.00 support will dampen this view and turn focus back to 131.51 low instead.
