GBP/JPY Daily Forecast

Daily Pivots: (S1) 139.34; (P) 140.94; (R1) 143.31;

No change in GBP/JPY's outlook. Intraday bias remains on the upside as long as 139.49 minor support holds. Further rise should be seen to 145.07 high first. As discussed before, GBP/JPY drew strong support from the near term rising rising channel. Also, the three wave structure of the fall from 145.08 to 135.71 suggests it's merely a correction only. Hence, whole rise from 118.81 is still in progress. Break of 145.07 will confirm this case and bring stronger rally towards 100% projection of 118.81 to 141.74 from 131.43 at 154.36. On the downside, below 139.49 will turn intraday outlook neutral again. Also, note that break of 135.71 support will an important signal that GBP/JPY's rally from 118.81 has completely finished already.

In the bigger picture, GBP/JPY's consolidation from 118.81 is still in progress to correct the five wave sequence from 215.87 to 118.81. As long as 131.43 support holds, such rise from 118.81 is viewed as having the first wave completed at 141.74, second at 131.43. Rise from 131.43 is treated as the third wave and could target fibo resistance levels of 154.36 and 155.88 before completion. However, note that break of 131.43 will confirm that such rise has completed earlier than we thought and will bring deeper fall to retest 118.81 instead. Nevertheless, note that sustained break of 118.81 is still needed to confirm resumption of long term down trend. Otherwise, consolidation from 118.81 might still extend further with prospect of another rise before completion.

Based on ActionForex.com Technical Outlook