GBP/JPY's break of 159.58 resistance confirms that fall from 162.56 has completed at 154.03 already and the three wave structure indicates that such fall is merely a correction in the larger rally. Further rise should now be seen to retest 162.56 high first and break will extend the whole rise from 138.99. Nevertheless, strong resistance should be seen as GBP/JPY approaches, 61.8% projection of 143.00 to 162.56 from 154.03 at 166.11. On the downside, though, below 156.96 support will indicate that rebound from 154.03 has completed and fall from 162.56 is still in progress for a test on the medium term channel (now at 152.20).

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). Sustained trading below channel support (now at 152.20) 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.