Daily Pivots: (S1) 143.80; (P) 144.20; (R1) 144.79; More…
GBP/JPY’s rebound from 140.92 extends higher today. Break of 144.60 resistance should bring retest of 147.95 high. On the downside, break of 142.33 will turn bias to the downside for 38.2% retracement of 126.54 to 147.95 at 139.77 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. However, sustained break of 139.31 support will dampen this case and turn medium term outlook neutral first.
