Overview

GBP/JPY's fall from 188.79 is still in progress and an intraday bias remains downside. As noted before, a consolidation pattern from 180.36 was completed at the level of 188.79 and a deeper decline should be seen back to the support zone of 180.36/64. Nonetheless, a breakout of minor resistance at 183.96 would dampen our bearish view and turn focus back to the resistance level of 186.33. This is supported by bearish divergence condition in the weekly MACD. Also, GBP/JPY was close to the key cluster resistance line of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200. A breakout of 174.86 will confirm trend reversal bringing a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we should be cautious on strong resistance from 199.80/200.00 to bring reversal finally.

Daily Pivots: (S1) 182.10; (P) 182.86; (R1) 183.36;