Overview

GBP/JPY's fall from 188.79 is still in progress and intraday bias remains on the downside. Сonsolidation pattern from 180.36 has been completed at 188.79 and a deeper decline should be seen back to the 180.36/64 support zone. Nonetheless, a break of the 186.33 minor resistance would now dampen our bearish view and turn focus back to 188.79 instead. This is supported by bearish divergence condition in the weekly MACD. 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 200 psychological level. A break of 174.86 will confirm a trend reversal and a bring 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) 183.37; (P) 184.21; (R1) 184.86