GBP/JPY dropped to as low as 183.14 last week, but was supported above 61.8% retracement of 174.86 to 195.86 at 182.88 and recovered. Overall outlook did not changed. Price actions from 195.86 are viewed as a consolidation pattern and should be supported by mentioned 182.88 Fibonacci level. An upside breakout through 195.86 is expected later. However, sustained trading below 182.88 will dampen our view and turn focus back to the 174.86 support instead.
In the longer term, the uptrend from the 116.83 long-term bottom is still in progress. The current rise is likely to have a test on 61.8% retracement of 251.09 to 116.83 at 199.80 in the medium term at least. A break of 174.86 will bring deeper correction first.
The material has been provided by InstaForex Company – www.instaforex.com