Daily Pivots: (S1) 138.97; (P) 139.64; (R1) 140.08; More…
GBP/JPY formed a temporary top after hitting 140.31 and retreated. Intraday bias is turned neutral first. Further rise is expected as long as 137.83 support holds. Above 140.31 will resume the rise from 133.03 and target a test on 142.71 high. Nevertheless, firm break of 137.83 will dampen the bullish case and turn bias back to the downside for 133.03/134.40 support zone.
In the bigger picture, rise from 123.94 is seen only as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.
