Daily Pivots: (S1) 145.40; (P) 146.35; (R1) 146.92; More…
GBP/JPY drops to as low as 145.12 and breached trend line support. Focus is now on 144.84 resistance turned support. Decisive break there will argue that whole rebound from 131.51 has completed. Deeper decline would then be seen to 141.00 support to confirm. Nevertheless, strong rebound from current level will retain near term bullishness. Break of 146.40 minor resistance will turn bias back to the upside for 148.57 and then 149.48.
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 in 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 149.48 will pave the way to 156.59 resistance and above. However, firm break of 141.00 support will dampen this view and turn focus back to 131.51 low instead.
