Daily Pivots: (S1) 119.16; (P) 119.66; (R1) 119.95;
With 120.93 minor resistance intact, further decline is still in favor and the fall from 127.30 should extend to retest 116.96 low. On the upside, though, above 120.93 will indicate short term bottoming, with bullish convergence condition in 4 hours MACD and bring stronger rebound.
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 128.44). 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.
With 120.93 minor resistance intact, further decline is still in favor and the fall from 127.30 should extend to retest 116.96 low. On the upside, though, above 120.93 will indicate short term bottoming, with bullish convergence condition in 4 hours MACD and bring stronger rebound.
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 128.44). 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.