Overview
GBP/JPY's fall from 188.79 is still in progress and an intraday bias remains on the downside. As noted before, a consolidation pattern from 180.36 has completed at 188.79. And more importantly, the whole decline from 195.86 is possibly resuming. A decisive break of 180.36 will target 174.86, the next key support level. On the upside, above 182.12 minor resistance will turn bias neutral and bring consolidations first. The breach of the medium term trend line support is taken as a sign of a trend reversal. This is supported by bearish divergence condition in 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. Break of 174.86 will confirm a 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'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
Daily Pivots: (S1) 179.45; (P) 181.66; (R1) 182.78
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