GBP/JPY's rally continues today and reaches as high as 138.21 so far. At this intraday remains on the upside as long as 135.39 minor support holds, targeting 139.19 resistance first. Break there will confirm that a short term bottom is at least in place at 129.71 after missing 129.32 key long term support. In such case, strong rally should be seen towards 165.02 key medium term resistance. On the downside, below 135.39 will turn intraday outlook neutral first but downside should be contained well above 129.71 low and bring rally resumption.

In the bigger picture, as mentioned before, the fall from 215.87 is treated as a five wave sequence (184.47, 197.42, 139.02, 165.02) and the fifth is expected to be contained by mentioned 128.92/129.32 support zone ( 61.8% projection of 197.42 to 139.02 from 165.02 at 128.92). We have noted that the diagonal triangle (or falling wedge) look of the fall from 165.02 as well as bullish convergence conditions in daily MACD and RSI are both supporting this case. Break of 139.19 resistance will confirm this case and strong rebound should then be seen towards first medium term resistance at 165.02 at least. On the downside, however, sustained break of 128.92/129.32 will pave the way to 100% projection target at 106.62.