GBP/JPY Daily Forecast

Daily Pivots: (S1) 157.35; (P) 158.29; (R1) 159.69; .

GBP/JPY rises further to as high as 160.44 so far today and at this point, intraday bias remains on the upside for next target of 161.8% projection of 138.99 to 150.86 from 143.00 at 160.20. On the downside, below 156.86 minor support will suggest that an intraday top is in place and turn outlook neutral first. Further break of 153.24 support will argue that a short term top is formed and will bring deeper fall towards channel support at 146.31.

In the bigger picture, there is no clear sign of topping in GBP/JPY yet and the rise from 118.81 might extend further than we expected. But after all, there is no change in the view that such rise is merely a correction in the larger down trend and then we'll continue to look for reversal signal as GBP/JPY enters into 155.88/167.34 resistance zone (38.2% and 50% retracement of 215.87 to 118.81). On the downside, break of the trend line support will be an indication that whole rise form 118.81 has completed and focus will then turn to 143.00 support for confirmation.

Based on ActionForex.com Technical Outlook