Overview

Further fall is expected in GBP/JPY. Resistance at 184.70 remains intact. Next target is seen at the key support level of 174.86. Decisive break there will carry larger bearish implications. On the upside, above 184.70 minor resistance will turn bias neutral and bring recovery first. A break of the medium-term trend-line support is taken as a sign of trend reversal. This is supported by bearish divergence in the weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to psychological level of 200. A break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67.

Daily Pivots: (S1) 179.56; (P) 181.45; (R1) 182.42;