Daily Pivots: (S1) 135.71; (P) 135.93; (R1) 136.31; More…
GBP/JPY is staying in consolidation from 135.17 and intraday bias remains neutral first. Upside of recovery should be limited by 137.78 resistance to bring fall resumption. On the downside break of 135.17 will resume the fall from 148.87 and target 131.51 low next.
In the bigger picture, current development suggests that GBP/JPY’s medium term fall from 156.59 (2018 high) is still in progress. Break of 131.51 will target 122.36 (2016 low). Structure of such decline is corrective looking so far, arguing that it’s just the second leg of consolidation from 122.36. Thus, we’d expect strong support from 122.36 to contain downside to bring reversal.
