GBP/JPY dipped through 183.34 to 183.04 last week, but quickly recovered. Initial bias is neutral this week first. On the upside, break of 185.67 resistance will argue that the pull back from 186.75 has completed. Further rise should then be seen through 186.75 to resume larger up trend. However, break of 183.04 will resume the decline and target 55 D EMA (now at 182.23).
In the bigger picture, up trend from 123.94 (2020 low) is in progress. Next target is 195.86 (2015 high). This will remain the favored case as long as 176.29 support holds, even in case of deeper pull back.
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.
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