Daily Pivots: (S1) 140.34; (P) 141.73; (R1) 143.76
GBP/JPY recovers after dropping to as low as 139.72. An intraday low should be in place with 143.15 minor resistance broken with 4 hours MACD crossed above signal line. Some consolidations could now be seen but upside is expected to be limited below 149.01 support turned resistance and bring fall resumption. Below 139.72 will target 61.8% retracement of 118.81 to 163.05 at 135.70 next.
In the bigger picture, prior break of 146.75 key support completed a double top reversal pattern (162.56, 163.05). This affirms our view that medium term rise form 118.81, which is treated as correction the larger down trend from 07 high of 251.90, has completed at 163.05 already, after failing to sustain above 55 weeks EMA. Fall from 163.05 is tentatively treated as resumption of the long term down trend and should now target a new low below 118.81. On the upside, break of 153.22 is needed to invalidate this bearish view. Otherwise, outlook will remain bearish.
Source: ActionForex