GBP/JPY Daily Forecast

Daily Pivots: (S1) 150.39; (P) 151.28; (R1) 152.52;

GBP/JPY recovers strongly from 150.02 and break of 152.02 minor resistance suggests that an intraday low is in place. Intraday outlook is turned neutral for the moment and some consolidation might be seen. Nevertheless, upside should be limited by 153.59 and bring fall resumption. Below 150.02 will target 146.75 key support next. However, considering mild bullish convergence condition in 4 hours MACD, break of 153.59 will argue that a short term bottom is formed and should bring stronger rebound towards 157.47 resistance.

In the bigger picture, as discussed before, rise from 118.81 is treated as correction to the larger down trend from 07 high of 251.90 only. We're favoring the case that such correction has completed at 163.05 already with bearish divergence conditions in daily MACD and RSI. The sustained trading below medium term trend line (118.81, 146.75) also supports this view. Firm break of 146.75 support will confirm and will turn outlook bearish for 118.81 low and beyond. On the upside, in case of another rise, upside is expected to be limited by 50% retracement of 215.87 to 118.81 at 167.34 to conclude such correction and bring reversal finally.

Based on ActionForex.com Technical Outlook