Overview
According to the attached H4 chart, GBP/JPY is expanding its fall. The 100% projection of 195.86 to 180.36 from 188.79 at 173.9 has already been met. Intraday bias remains on the downside for the next long-term Fibonacci level at 165.67. On the upside, breaks above the minor resistance at 174.11 will turn bias neutral and bring consolidations before another drop takes place. The tumble from 196.85 is currently viewed as correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We asses the depth of correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring rebound, but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.
Daily Pivots: (S1) 172.64; (P) 173.77; (R1) 174.46
