GBP/JPY's decline resumed afte brief consolidation and reached as low as 118.54. Intraday bias remains on the downside this week for 61.8% projection of 127.30 to 119.37 from 122.76 at 117.85, and then 116.83 key support. On the upside, break of 120.19 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish even in case of recovery.

In the bigger picture, fall from 127.30 is tentatively treated as resuming of decline from 140.20, which is part of the medium term down trend from 163.05. Break of 116.83 will confirm such down trend resumption and should target 61.8% projection of 140.02 to 116.83 from 127.30 at 112.96. On the upside, break of 127.30 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish.

In the longer term picture, fall from 251.09 is treated as resumption of multi decade down trend. Monthly MACD will likely be dragged down by the current decline, which suggest that the cross is building up downside momentum again. Current development now favors at least a break of 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level, before the cross bottoms.

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