Intraday bias in GBP/JPY remains neutral for the moment. Rebound from 184.95 might extend. But we’d expect strong resistance from 195.86 to limit upside and bring reversal. At this point, we are holding on to the view that consolidation pattern from 195.86 is not completed yet. Break of 190.99 will start the third leg of the consolidation and will target the 184.95 support.
According to the attached H4 chart, the uptrend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. The medium-term momentum is not too convincing with bearish divergence condition in the weekly MACD. We’d be cautious in the medium term topping around 200 and bring a deep correction. Meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
Daily Pivots: (S1) 194.07; (P) 194.30; (R1) 194.77;
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