GBP/JPY Daily Outlook
Daily Pivots: (S1) 129.53; (P) 129.93; (R1) 130.61;
GBP/JPY's rise was limited at 130.39 and dropped sharply. Intraday bias is turned neutral first. Break of 126.11 support will suggest that the rebound from 122.36 has completed. In that case, intraday bias will be turned back to the downside for retesting 122.36. Nonetheless, not again that bullish convergence condition in daily MACD raises the chance of trend reversal. Break of 132.21 resistance will target key level at 138.81 next.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 138.81 resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
