Daily Pivots: (S1) 131.74; (P) 132.37; (R1) 132.89; More…
GBP/JPY’s decline resumed after brief consolidation the break of 131.51 low indicates resumption of larger down decline from 156.69. Intraday bias is back on the downside. Further fall should be seen to 122.36 low next. On the upside, above 132.99 minor resistance will turn intraday bias neutral first. But recovery should be limited by 135.66 resistance to bring fall resumption.
In the bigger picture, 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.
