Daily Pivots: (S1) 131.38; (P) 132.02; (R1) 132.45; More…
Intraday bias in GBP/JPY remains on the downside at this point. Corrective rebound from 126.54 should have completed with three waves up to 135.74, after failing to sustain above 38.2% retracement of 148.87 to 126.54 at 135.07. Deeper fall should be seen to retest 126.54 low. On the upside, break of 133.35 will turn intraday bias neutral first.
In the bigger picture, consolidation pattern from 122.75 (2016 low) is possibly still in progress. Strong rebound from 126.54 argues that it may be the third leg of the pattern. Further rise could be seen to 148.87/156.59 resistance zone before completion. On the downside, though, sustained break of 122.75 low will target 116.83 (2011 low).
