Forex:GBP/JPY Daily Outlook

GBP/JPY jumps sharply higher today and the break of 124.34 suggests that rebound form 118.82 has resumed. Intraday bias is back on the upside and break of 124.64 resistance will target 127.10 support turned resistance next. On the downside, break of 122.12 support, however, will indicate that the corrective rebound from 118.82 has completed and will flip bias back to the downside for retesting 118.82 low instead. 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 term reversal.

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