Daily Pivots: (S1) 148.79; (P) 149.38; (R1) 150.31; More…
Intraday bias in GBP/JPY is turned neutral first with 4 hour MACD crossed above signal line. On the downside, sustained break of of 38.2% retracement of 136.96 to 156.05 at 148.75 will argue that it’s correcting whole up trend from 123.94, and target 142.71 resistance turned support next. On the upside, though, break of 151.28 support turned resistance will suggest that correction form 156.05 has completed after defending 148.75. Stronger rise should then be seen back to retest 156.05 high.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Focus remains on 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. Next target is 61.8% retracement of 195.86 (2015 high) to 122.75 at 167.93. On the downside, sustained break of 149.03 support, however, will argue that rise from 123.94 has completed. Further break of 142.71 would open up the bearish case for retesting 122.75 low.
