Daily Pivots: (S1) 120.89; (P) 121.36; (R1) 121.98;
The break of 121.75 minor resistance argues that a short term bottom is formed at 119.37 with bullish convergence condition in 4 hours MACD. But there is no follow through buying yet. Hence, intraday bias remains neutral first. On the upside, above 121.87 will affirm near term reversal and will target 55 days EMA (now at 122.21). Break there will target a test on 127.30. On the downside, through, break of 119.37 will extend the fall from 127.30 to retest 116.96 low instead.
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 128.13). 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.
The break of 121.75 minor resistance argues that a short term bottom is formed at 119.37 with bullish convergence condition in 4 hours MACD. But there is no follow through buying yet. Hence, intraday bias remains neutral first. On the upside, above 121.87 will affirm near term reversal and will target 55 days EMA (now at 122.21). Break there will target a test on 127.30. On the downside, through, break of 119.37 will extend the fall from 127.30 to retest 116.96 low instead.
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 128.13). 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.