Forex: GBP/JPY Daily Outlook

GBP/JPY is stuck in tight range of 122.12/124.64 and intraday bias remains neutral for the moment. On the downside, break of 122.12 support will indicate that the corrective rebound from 118.82 has completed and will flip bias back to the downside for retesting 118.82 low. On the upside, above 124.64 will in turn extend the rebound from 118.82 towards 127.10 support. In the bigger picture, the corrective structure of the rebound from 116.83 to 133.48 indicates that down trend from 2007 high of 251.09 is not finished yet. Break of 116.83 will resume such down trend and target 110 psychological level first. Break will pave the way to the more important 100 level and possibly below. On the upside, however, above 127.01 will firstly indicate that fall from 133.48 is finished. Further, break of 133.48 should then confirm medium termreversal.

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