GBP/JPY Daily Outlook
Daily Pivots: (S1) 169.55; (P) 170.07; (R1) 171.03;
The GBP/JPY's rally resumes today and intraday bias is back on the upside. As noted before, pull back from 174.84 might be finished at 163.87 already. Current rise from 163.87 should target 73.65/174.84 resistance zone. Nonetheless, break of 167.19 minor support will turn bias back to the downside for retesting 163.87 support instead.
In the bigger picture, there was no follow through selling in the GBP/JPY so far to confirm trend reversal. And the up trend from 116.83 (2011 low) might still extend to above 174.84. Nonetheless, upside momentum is rather unconvincing as seen in weekly MACD. Thus, even in that case, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside. Meanwhile, sustained break of medium term trend line support (125.67, 147.61, now at around 162.60) should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="474" height="242">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="474" height="242">