Daily Pivots: (S1) 142.17; (P) 142.74; (R1) 143.17; More…
At this point, GBP/JPY is still staying above 140.62 support and intraday bias remains neutral first. Break of 140.62 will suggest completion of the rebound and turn bias to the downside. In that case, deeper fall would be seen back to retest 131.51 low. On the upside, in case of another rise, we’d expect strong resistance from trend line (now at 146.85) to limit upside, at least on first attempt.
In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline is turn argues that it’s the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.38 will pave the way to 156.59 resistance and above.
