GBP/JPY Daily Forecast

Daily Pivots: (S1) 156.08; (P) 156.97; (R1) 157.55;

GBP/JPY's fall from 160.24 accelerates today and takes out 154.03 support as well as medium term trend line support. Whole decline from 162.56 is still in progress and should now target 150.86 cluster support (50% retracement of 143.00 to 162.56 at 152.78) next. On the upside, above 156.00 resistance will turn intraday outlook neutral first. But risk will now remains on the downside as long as 160.24 resistance holds.

In the bigger picture, medium term rise from 118.81 is treated as correction to the fall from 215.87 and is expected to conclude in 155.88/167.34 resistance zone (38.2% and 50% retracement of 215.87 to 118.81). Indeed, considering that 55 weeks EMA was just touched, and daily MACD and RSI have both broken their up trend, GBP/JPY has likely topped at 162.56 already. Sustained trading below medium term channel support will confirm this case and will likely encourage a retest of 118.81 low at least. Though, a break above 160.24 will invalidate this view and would bring another high above 162.56 before topping.

Based on ActionForex.com Technical Outlook