Daily Pivots: (S1) 123.24; (P) 123.69; (R1) 124.43;
GBP/JPY's recovery is limited by 4 hours 55 EMA and weakens sharply again. But as it's staying in tight range above 122.96 temporary support, intraday bias remains neutral. On the downside, below 122.96 will extend the fall from 127.30. Also, further break of 122.63 support will indicate that whole choppy rebound from 116.83 has completed at 127.30 already. In such case, deeper decline should be seen through 119.98 support for a retest on 116.83. However, break of 125.60 will argue that such rebound from 116.83 is still in progress for another high above 127.30.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 128.69). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.
GBP/JPY's recovery is limited by 4 hours 55 EMA and weakens sharply again. But as it's staying in tight range above 122.96 temporary support, intraday bias remains neutral. On the downside, below 122.96 will extend the fall from 127.30. Also, further break of 122.63 support will indicate that whole choppy rebound from 116.83 has completed at 127.30 already. In such case, deeper decline should be seen through 119.98 support for a retest on 116.83. However, break of 125.60 will argue that such rebound from 116.83 is still in progress for another high above 127.30.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 128.69). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.