GBP/JPY Daily Outlook
GBP/JPY Daily OutlookDaily Pivots: (S1) 129.09; (P) 129.76; (R1) 130.85; More.
As noted before, choppy decline from 133.48 should have finished at 127.10 after drawing support from 38.2% retracement of 117.29 to 133.48. Intraday bias remains on the upside for a test on 133.48 resistance first. Break will confirm that whole rise from 117.29 has resumed and should target 140.02 key resistance level next. On the downside, though, below 129.11 minor support will flip bias back to the downside for 127.10 instead.
In the bigger picture, recent pull back in GBP/JPY was relatively shallower than other yen crosses. Indeed, 126.54 support is intact so far and thus, retaining the bullish case that rise from 116.83 is still in progress. In other words, favor is mildly on the case that 116.83 is at least a medium term bottom. Though, we'd still prefer to see decisive break of 133.48 resistance to confirm upside momentum and pave the way to 140.02 key resistance level. Otherwise, we'll stay neutral first and expect some more consolidative trading below 133.48 first.