GBP/JPY Today Forecast

Daily Pivots: (S1) 134.57; (P) 135.81; (R1) 137.88;

As discussed before, GBP/JPY's recovery from 132.13 might have completed at 137.33 already. Intraday bias is cautiously on the downside for retesting 132.13 first. Break will confirm fall resumption to 61.8% projection of 143.59 to 132.13 from 137.33 at 130.24 next. On the upside, above 135.69 minor resistance will delay the bearish case and bring more consolidations. But upside should be limited by 139.21 cluster resistance (38.2% retracement of 150.68 to 132.13 at 139.21, 61.8% retracement of 143.59 to 132.13 at 139.21) and bring fall resumption.

In the bigger picture, while the rebound from 132.13 was strong, there is no change in the bearish outlook. Medium term rebound from 118.18, which is a correction to the long term down trend from 07 high of 251.90, has completed at 163.05 already. Decline from 163.05 is tentatively treated as resumption of the long term down trend from 2007 high of 251.09 and should target a new low below 118.81. On the upside, decisive break of 143.59 cluster resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.

Based on ActionForex.com Technical Outlook