GBP/JPY stayed in tight range below 152.38 last week and outlook is unchanged. Initial bias stays neutral this week first. On the upside, break of 152.38 will reaffirm that case that correction from 153.39 has already completed, and bring retest of this high next. However, break of 150.83 minor support will extend the corrective pattern with another fall to 149.03 support before completion.
In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). Next target is 156.59 resistance (2018 high). Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.
In the longer term picture, the strong break of 55 months EMA was an early sign of long term bullish reversal. Firm break of 156.69 resistance should now confirm the start of an up trend for 195.86 (2015 high).
