Daily Pivots: (S1) 141.91; (P) 142.49; (R1) 142.87; More…
A temporary low is formed at 141.15 and intraday bias in GBP/JPY is turned neutral first. On the downside, break of 141.15 will extend the correction from 147.95 to 38.2% retracement of 126.54 to 147.95 at 139.77. On the upside, above 143.05 minor resistance will turn bias to the upside for retesting 147.95 high instead.
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.
