GBP/JPY Daily Outlook

Daily Pivots: (S1) 140.31; (P) 140.87; (R1) 141.63;

GBP/JPY weakens mildly today but stays in consolidation from 142.71. Intraday bias remains neutral first. With 138.24 support intact, further rise is still expected. On the upside, break of 142.71 will target 138.2% projection of 123.94 to 135.74 from 129.27 at 145.57 next. On the downside, however, break of 138.24 support will confirm short term topping, and turn bias back to the downside for 55 day EMA (now at 137.96).

In the bigger picture, rise from 123.94 is still seen as a rising leg of the sideway consolidation pattern from 122.75 (2016 low). As long as 147.95 resistance holds, an eventual downside breakout remains in favor. However, firm break of 147.95 will raise the chance of long term bullish reversal. Focus will then be turned to 156.59 resistance for confirmation.