Daily Pivots: (S1) 140.42; (P) 140.98; (R1) 141.90; More…
GBP/JPY’s recent rally resumes and hits as high as 141.85 so far. Intraday bias is back on the upside. Rise from 126.54 should target trend line resistance (now at 143.80) next. Sustained break will pave the way to 148.87 key resistance next. On the downside, break of 139.31 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
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.
