Daily Pivots: (S1) 136.58; (P) 137.15; (R1) 137.48; More…
Intraday bias in GBP/JPY remains on the downside as choppy fall from 144.77 continues. The cross should target medium term fibonacci level at 135.39. At this point, price actions from 148.42 are viewed as a correction. Hence, we’d anticipate strong support from 135.39 to bring rebound. On the upside, break of 138.25 minor resistance will turn bias to the upside for 140.08 resistance. Break will indicate near term reversal. However, sustained break of 135.39 will target 61.8% retracement at 132.31.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern. Or, sustained break of 50% retracement of 122.36 to 148.42 at 135.39 will turn outlook bearish for a test on 122.36 low. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement of 195.86 to 122.36 at 167.78.
