GBP/JPY rebounded to as high as 124.34 last week but lost momentum ahead of mentioned 124.64 resistance. Outlook, thus remains unchanged that rebound from 118.82 is a correction and fall from 133.48 is expected to resume sooner or later. Initial bias is neutral this week with focus on 121.33 minor support. Break there will indicate that fall from 133.48 is resuming and should send GBP/JPY through 118.82 to 116.83/117.29 support zone. Though, note that another rise and break of 124.64 will turn focus back to 127.10 support turned resistance instead.
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.