[m.youssif]

With a break of 130.44 minor support, intraday bias in GBP/JPY is flipped back to the downside for 127.53 first. Break will target a test on 122.40 low. On the upside, though, above 132.96 will bring another rise instead. However, as long as 135.48 resistance holds, there is no confirmation of trend reversal and thus, we'd favor a downside break of 122.40 after having some sideway consolidations first.

In the bigger picture, note that GBP/JPY is still limited below 55 weeks EMA and thus, call from 163.05 is possibly still in progress. As discussed before, such decline is treated as the second leg of the consolidation pattern that started at 118.81 (2009 low). Hence, while deeper decline would be seen, strong support is expected around 118.81 low to conclude such decline and bring another medium term rise to extend the consolidation from 118.81. However, break of 135.48 resistance is needed to be the first signal of reversal or we'll stay bearish. Meanwhile, Decisive break of 118.81 will in turn confirm long term down trend resumption for 100 psychological level.

[m.youssif]

With a break of 130.44 minor support, intraday bias in GBP/JPY is flipped back to the downside for 127.53 first. Break will target a test on 122.40 low. On the upside, though, above 132.96 will bring another rise instead. However, as long as 135.48 resistance holds, there is no confirmation of trend reversal and thus, we'd favor a downside break of 122.40 after having some sideway consolidations first.

In the bigger picture, note that GBP/JPY is still limited below 55 weeks EMA and thus, call from 163.05 is possibly still in progress. As discussed before, such decline is treated as the second leg of the consolidation pattern that started at 118.81 (2009 low). Hence, while deeper decline would be seen, strong support is expected around 118.81 low to conclude such decline and bring another medium term rise to extend the consolidation from 118.81. However, break of 135.48 resistance is needed to be the first signal of reversal or we'll stay bearish. Meanwhile, Decisive break of 118.81 will in turn confirm long term down trend resumption for 100 psychological level.