Daily Pivots: (S1) 120.90; (P) 121.44; (R1) 121.75;
GBP/JPY's fall from 127.30 extends further to as low as 120.88 so far today and is still in progress for 119.98 support. As noted before, break there will confirm that whole choppy corrective rise from 116.83 is finished at 127.30 already. And in such case, recent down trend is likely resuming for a new low below 116.83. On the upside, break of 123.15 is need to signal short term bottoming. Otherwise, we'll stay cautiously bearish even in case of recovery.
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 128.47). 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 fall from 127.30 extends further to as low as 120.88 so far today and is still in progress for 119.98 support. As noted before, break there will confirm that whole choppy corrective rise from 116.83 is finished at 127.30 already. And in such case, recent down trend is likely resuming for a new low below 116.83. On the upside, break of 123.15 is need to signal short term bottoming. Otherwise, we'll stay cautiously bearish even in case of recovery.
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 128.47). 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.