GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.67; (P) 174.13; (R1) 174.43;
A temporary top is in place at 174.65 and intraday bias is turned neutral first. With 172.77 minor support intact, further rally is still in favor. The correction pattern from 175.36 has completed at 169.34 already. And above 174.65 will target a test on 175.36 resistance first. On the downside, though, below 172.77 minor support will turn bias back to the downside for 169.34/53 again.
In the bigger picture, the strong support from 169.53 structural level suggested that 175.36 is not the medium term top yet. And, up trend from 116.83 long term bottom is is favor to extend higher. Break of 175.36 will target 50% retracement retracement of 251.09 to 116.83 at 183.96. Medium term momentum as seen in weekly MACD isn't too convincing. Thus, we'd expect some strong resistance from 183.96 to finally bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
