GBP/JPY jumped to as high as 126.19 last week before forming a temporary top there and retreated. Initial bias is turned neutral this week for some consolidations first. But downside should be contained above 123.69 support and bring another rally. The break of 125.82 resistance confirmed resumption of whole rebound from 118.82. Above 126.19 will target 100% projection of 118.82 to 125.82 from 120.82 at 127.82 next.
In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 are corrective in nature so far. Rise from 118.82 could be the third leg of the pattern from 116.83 and might target 133.48 and above. But this is far from being certain. After all, the likely scenario is that we'll see more range trading between 116.83 and 140.02 (50% retracement of 163.05 to 116.83 at 139.94) ahead, before an eventual downside breakout. We'll favor this view as long as 140.02 resistance holds.
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.