Daily Pivots: (S1) 149.39; (P) 149.88; (R1) 150.39; More…
GBP/JPY’s upside momentum is diminishing mildly as seen in 4 hour MACD. But further rise is expected. as long as 147.38 support holds. Current up trend from 123.94 should target 100% projection of 123.94 to 142.71 from 133.03 at 151.80 next. On the downside, however, break of 147.38 support should now indicate short term topping. Deeper correction would seen back to 55 day EMA (now at 144.42).
In the bigger picture, rise from 123.94 is seen as the third leg of the sideway pattern from 122.75 (2016 low). With 147.95 resistance taken out, further rally would now be seen to 156.59 resistance (2018 high), Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.
