GBP/JPY's dives sharply to as low as 156.44 so far today. Yesterday's break of 159.74 minor support served as an early indication that a short term top is at least formed at 162.56, with bearish divergence condition in 4 hours MACD and RSI. At this point, intraday bias will remain on the downside as long as 158.83 minor support holds. Break of 154.85 support will confirm this case and bring deeper fall to channel support at 149.54. On the upside, above 158.83 will turn intraday outlook neutral first.
In the bigger picture, medium term rise from 118.81 is treated as correction to the fall from 215.87 and is expected to conclude in 155.88/167.34 resistance zone (38.2% and 50% retracement of 215.87 to 118.81). Break of 154.85 support will starts to argue that such correction has completed at 162.56 already. Sustained trading below mentioned channel support will add much credence to this case and will likely encourage a retest of 118.81 low at least. However, before that, another rise cannot be ruled out. But after all, we'll continue to look for reversal signal even if such rally will extend.