Overview
The GBP/JPY pair reached the level of 188.79 breaching the resistance at 188.28 last week. The cross ended the week lower paring all gains. The initial bias is neutral this week with the main focus on minor support at 185.98. A breakout there will revive the case that price actions from 180.36 are merely corrective. In this case, a deeper fall would be seen to retest the level of 180.36. However, we might finally see GBP/JPY picking up upside momentum above 188.79 with the aim to test a high of 195.86. A breakout of 174.86 will confirm 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 should be cautious as strong resistance at 199.80/200.00 is expected to bring reversal.
Daily Pivots: (S1) 185.96; (P) 187.01; (R1) 187.58;
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