Daily Pivots: (S1) 145.16; (P) 145.79; (R1) 146.27; More…
GBP/JPY drops to as low as 143.18 so far today. The solid break of 144.97 support confirms resumption of decline from 156.69. Intraday bias stays on the downside for 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next. Brea there will target key cluster level at 139.29. On the upside, break of 147.04 support turned resistance is now needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, for now, we’re treating price actions from 156.59 as a corrective move. Therefore, while deeper fall is expected, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. There is still prospect of extending the rise from 122.36. However, considering that GBP/JPY failed to sustain above 55 month EMA (now at 153.94), firm break of 139.29 will confirm trend reversal and turn outlook bearish.
