GBP/JPY dropped to as low as 118.82 last week and broke mentioned target of 61.8% retracement of 116.83 to 133.48 at 123.19. A temporary low might be formed and initial bias is neutral this week for some consolidation. But recovery is expected to be limited below 124.64 minor resistance and bring fall resumption. Below 118.82 will extend the decline from 133.48 to retest 116.83/117.29 support zone next.

In the bigger picture, the corrective structure of the rebound from 116.83 to 133.48 indicates that down trend from 2007 high of 251.09 is not finished yet. Break of 116.83 will resume such down trend and target 110 psychological level first. Break will pave the way to the more important 100 level and possibly below. ON the upside, break of 133.48 is needed to indicate medium term reversal. Otherwise, we'll stay bearish even in case of strong recovery.

In the longer term picture, fall from 251.09 is treated as resumption of multi decade down trend. Current development gives no indication of medium term reversal yet and GBP/JPY would likely drop towards 100 psychological level on down trend resumption.