Daily Pivots: (S1) 141.52; (P) 142.03; (R1) 142.73; More
GBP/JPY’s rebound from 139.29 resumed today by breaking 142.98. Focus is now back on 143.18 resistance. Decisive break there will indicate short term reversal. That’s fall from 147.76 has completed at 139.29. In that case, intraday bias will be turned back to the upside for retesting 147.76/148.42 resistance zone. Overall, price actions from 148.42 are seen as a sideway consolidation pattern. In case of another fall, downside should be contained by 135.58 cluster support to bring rebound.
In the bigger picture, the sideway pattern from 148.42 is still unfolding. In case of deeper fall, we’d expect strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside. Medium term rise from 122.36 is expected to resume later. And break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. However, firm break of 135.58/39 will dampen the bullish view and turn focus back to 122.36 low.
