Daily Pivots: (S1) 134.42; (P) 134.85; (R1) 135.19; More…
No change in GBP/JPY’s outlook despite loss of upside momentum as seen in 4 hour MACD. Further rise cannot be ruled out but upside should be limited by 61.8% retracement of 144.95 to 123.94 at 136.92. On the downside, break of 132.40 minor support will turn bias to the downside for retesting 123.94 low. However, sustained break of 136.92 will raise the chance of trend reversal and turn focus to 144.95 resistance.
In the bigger picture, current development suggests that price actions from 122.75 (2016 low) are merely a sideway consolidation pattern, which has completed at 147.96. Larger down trend from 195.86 (2015 high) as well as that from 251.09 (2007 high) are possibly resuming. Break of 122.75 should target 61.8% projection of 195.86 to 122.75 from 147.95 at 102.76 next. In any case, outlook will remain bearish as long as 147.95 resistance holds.
