Overview
Intraday bias in GBP/JPY remains on the downside for the next long-term Fibonacci level at 165.67. On the upside, breaches above the minor resistance at 173.35 will turn bias neutral and bring consolidation. But recovery should be limited below the 180.36 support, which turned into resistance, and bring resumption of the fall. 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 assess the depth of correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring a rebound, but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.
Daily Pivots: (S1) 168.91; (P) 170.10; (R1) 170.70
