Daily Pivots: (S1) 140.54; (P) 141.83; (R1) 142.57; More…
GBP/JPY’s break of 141.25 support suggests that corrective fall from 147.95 is extending. Intraday bias is back on the downside for 140.83 support first. Break there will target 38.2% retracement of 126.54 to 147.95 at 139.77. On the upside, above 143.28 resistance will turn intraday bias neutral again first.
In the bigger picture, rise from 126.54 could either be the third leg of the consolidation pattern from 122.75 (2016 low), or the start of a new up trend. In either case, further rally is expected as long as 139.31 support holds, into 148.87/156.59 resistance zone. Reaction from there should reveal which case it should be in. However, sustained break of 139.31 support will dampen this case and turn medium term outlook neutral first.
