Daily Pivots: (S1) 139.00; (P) 139.75; (R1) 140.18; More…
GBP/JPY recovered after drawing support from 139.36 minor support and intraday bias stays neutral first. On the downside, break of 139.36 will indicate short term topping. Deeper fall should then be seen back to 135.74 resistance turned support first. On the upside, break of 141.57 will resume the rise from 126.54 to for 148.87 key resistance.
In the bigger picture, consolidation pattern from 122.75 (2016 low) is still in progress with rise from 126.54 as the third leg. Further rise should be seen back to 148.87/156.59 resistance zone. For now, we’d expect strong resistance from there to limit upside. On the downside, sustained break of 135.74 will suggest that such rebound has completed. Deeper decline could the be seen to retest 126.54 low.
