Intraday bias in GBP/JPY remains neutral for consolidation above 180.36 temporary low. A further decline is expected as long as 187.36 resistance holds. Below 180.36, key support levelis expected at 174.86. However, a decisive break of 187.36 will turn focus back to 195.26 resistance instead. The break of the medium term trend line support is taken as a sign of a trend reversal. This is supported by bearish divergence condition in weekly MACD. Besides, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the 200 psychological level. A break of 174.86 will confirm a trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67.
The material has been provided by InstaForex Company – www.instaforex.com