GBP/JPY dropped sharply to as low as 176.29 but rebounded strong well ahead of 38.2% retracement of 155.33 to 183.99 at 173.04. The development argues that price actions from 183.99 high are merely correcting the rise from 155.33. Initial bias stays neutral this week first. Break of 182.51 resistance should bring further rise through 183.99 to resume larger up trend. Meanwhile, outlook will now stay bullish as long as 173.04 holds, in case of another dip.
In the bigger picture, as long as 172.11 resistance turned support holds, up trend from 123.94 (2020 low) is expected to continue through 183.99 at a later stage, towards 195.86 (2015 high). Nevertheless, firm break of 172.11 will argue that larger correction is already underway.
In the longer term picture, rise from 122.75 (2016 low) in still in progress to retest 195.86 (2015 high). Based on current momentum, break of 195.86 is in favor. But strong resistance could still be seen from 61.8% retracement of 251.09 (2007 high) to 116.83 (2011 low) at 199.80 to limit upside on first attempt.
