Overview

GBP/JPY remains mildly on the downside for the 180.36 low first. A break will confirm resumption of the whole fall from 195.86 and a deeper decline would be seen to test the 174.86 key support level. On the upside, the pair 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. It is supported by bearish divergence condition in the weekly MACD. Besides, 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 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 the reversal finally.

Daily Pivots: (S1) 180.73; (P) 181.61; (R1) 182.29