Daily Pivots: (S1) 142.90; (P) 143.72; (R1) 144.14; More…
Intraday bias in GBP/JPY remains neutral at this point. Correction from 147.95 is in favor to extend lower. Break of 140.83 will target 38.2% retracement of 126.54 to 147.95 at 139.77. On the upside, break of 144.52 will turn bias to the upside to retest 147.95 high.
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. However, sustained break of 139.31 support will dampen this case and turn medium term outlook neutral first.
