[m.youssif]

GBP/JPY is consolidation around 4 hours 55 EMA for the moment but lacks buying for a meaning recovery. With 137.62 minor resistance intact, pull back from 139.99 is still in favor to extend further lower. But we'd continue to expect strong support above 132.95 resistance turned support to contain downside and bring rally resumption. Above 132.62 will flip bias back to the upside to retest 139.99 first. Break will target 50% retracement of 163.05 to 122.40 at 142.72 next.

In the bigger picture, as noted before, choppy fall from 163.05 is treated as second leg of the consolidation pattern that started at 2009 low of 118.81. The break of medium term falling channel as well as 55 weeks EMA suggests that such decline has finished at 122.40 already. In other words, the third leg of the consolidation should have started and should target 163.05 and possibly above in medium term. On the downside, below 130.17 support is needed to invalidate this view. Otherwise, we'll now stay bullish in the cross.

[m.youssif]

GBP/JPY is consolidation around 4 hours 55 EMA for the moment but lacks buying for a meaning recovery. With 137.62 minor resistance intact, pull back from 139.99 is still in favor to extend further lower. But we'd continue to expect strong support above 132.95 resistance turned support to contain downside and bring rally resumption. Above 132.62 will flip bias back to the upside to retest 139.99 first. Break will target 50% retracement of 163.05 to 122.40 at 142.72 next.

In the bigger picture, as noted before, choppy fall from 163.05 is treated as second leg of the consolidation pattern that started at 2009 low of 118.81. The break of medium term falling channel as well as 55 weeks EMA suggests that such decline has finished at 122.40 already. In other words, the third leg of the consolidation should have started and should target 163.05 and possibly above in medium term. On the downside, below 130.17 support is needed to invalidate this view. Otherwise, we'll now stay bullish in the cross.