Overview

GBP/JPY stays neutral for the moment. On the downside, a break of the 180.36 support will make the whole fall from 195.86 resume and will target a test at the 174.86 key support level. On the upside, above 184.41, resistance will extend the sideways trading from 180.36 with another rise. 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 the weekly MACD. Besides, GBP/JPY was close to the 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 the trend reversal and bring a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we will be cautious about strong resistance from 199.80/200.00 to bring reversal finally.

Daily Pivots: (S1) 180.83; (P) 181.70; (R1) 182.77;