Overview
An intraday bias in GBP/JPY remains on the downside for next long-term fibonacci level at 165.67. On the upside, above 173.35 minor resistance will turn into a neutral bias and bring consolidation first. But recovery should be limited below the 180.36 support turned into resistance and brought a fall reversal. The current development confirmed medium-term topping at 195.86 on a bearish divergence condition in weekly MACD. A fall from 195.86 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We'd assess 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'd expect strong resistance to bring 195.86 to limit the upside and bring another fall to extend the correction pattern.
Daily Pivots: (S1) 169.60; (P) 170.94; (R1) 172.56;
