Daily Pivots: (S1) 128.75; (P) 129.56; (R1) 131.19; More…
GBP/JPY’s break of 130.69 resistance suggests that corrective rise from 126.54 is extending higher. Intraday bias is mildly on the upside for 55 day EMA (now at 132.16) and above. But upside should be limited by 38.2% retracement of 148.87 to 126.54 at 135.07 to bring down trend resumption. On the downside, firm break of 126.54 will resume larger down trend to 122.61 support next.
In the bigger picture, outlook remains clearly bearish with GBP/JPY staying well below 55 week and 55 month EMA. Medium term fall from 156.59 (2018 high) is still in progress. Next target is 122.36 (2016 low). We’d be cautious on bottoming there. But break of 135.66 resistance is needed to be the first sign of reversal. Sustained break of 122.36 will target next key level at 116.83 (2011 low).
