Daily Pivots: (S1) 145.64; (P) 146.23; (R1) 146.64; More…
GBP/JPY’s retreat from 147.95 extends lower today but intraday bias remains neutral first. Downside is still expected to be contained above 142.47 support to bring rise resumption. On the upside, above 147.95 will target 148.87 structural resistance first. Break will target 156.59 key resistance next. However, break of 142.47 will indicate short term topping and bring deeper pull back to 139.31 support.
In the bigger picture, rise from 126.54 could either be the third leg of the consolidation pattern from 122.75 (2016 low), or the start of a new up trend. In either case, further rally is expected as long as 139.31 support holds, into 148.87/156.59 resistance zone. Reaction from there should reveal which case it should be in. Rejection from there will extend long term range trading. Decisive break of 156.69 will carry long term bullish implications.
