Daily Pivots: (S1) 150.74; (P) 150.96; (R1) 151.28; More…

GBP/JPY hits as high as 151.66 so far, just ahead of 100% projection of 123.94 to 142.71 from 133.03 at 151.80. As it’s now close to channel resistance (from 123.94 low) at 151.81, we’d be cautious on topping from current level. On the downside, break of 150.54 minor support will turn bias to the downside for correction. However, decisive break of 151.80 will indicate upside acceleration for next key resistance at 156.59.

In the bigger picture, rise from 123.94 is seen as the third leg of the sideway pattern from 122.75 (2016 low). With 147.95 resistance taken out, further rally would now be seen to 156.59 resistance (2018 high), Sustained break there should confirm long term bullish trend reversal. On the downside, break of 142.71 resistance turned support is needed to be the first sign of completion of the rise from 123.94. Otherwise, outlook will remain bullish even in case of deep pull back.

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