GBP/JPY stayed in tight range below 124.34 last week. Initial bias remains neutral and consolidative trading could be seen. On the downside, below 121.90 will indicate that rebound from 118.82 is already completed and will flip bias back to the downside this support Break will resume the whole fall from 133.48 to 116.83/117.29 support zone. However, break of 124.34/64 will extend such rise to 127.10 support turned resistance.
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, however, above 127.01 will firstly indicate that fall from 133.48 is finished. Further, break of 133.48 should then confirm medium term reversal.
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.