GBP/JPY Daily Outlook

Intraday bias in GBP/JPY remains neutral for the moment. As noted before, with 147.43 resistance intact, we're holding on to the bearish view that choppy recovery from 141.99 is correction to fall from 149.15 only. A break below 143.78 minor support will suggest that such recovery is completed and will flip intraday bias back to the downside. Further break of 141.99 will target 139.26 support next. However, note that break of 147.43 will dampen this immediate bearish view and suggest that rise from 139.26 is still in progress for another high above 149.15 before completion.

In the bigger picture, medium term rebound from 118.18, which is a correction to the long term down trend from 07 high of 251.90, has completed at 163.05 already. Fall from 163.05 is expected to resume after sideway consolidation from 139.69 completes and should target a new low below 118.81. However, note that sustained break of 61.8% retracement of 163.05 to 139.26 at 153.96 will argue that fall from 163.05 has finished already and will, in turn indicate that rise fro 118.81 is still in progress to another high above 163.05 before conclusion.

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