[m.youssif]

GBP/JPY drew support from mentioned 132.96, 38.2% retracement of 122.40 to 139.99, as well as 55 days EMA and turned sideway. With 132.96 support intact, we'd still expect rebound from 122.40 to resume sooner or later. Above 135.96 minor resistance will flip bias back to the upside for a retest on 139.99 resistance first. Break will target 50% retracement of 163.05 to 122.40 at 142.72 next. However, sustained break of 132.96 will dampen this bullish view and would bring deeper decline to 61.8% retracement of 122.40 to 139.99 at 129.11 and below.

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. Such decline should have completed at 122.40. In other words, the third leg of the consolidation should have started and should target 163.05 and possibly above in medium term. We'll stay bullish in the cross as long as 130.17 support holds. However, break of 130.17 will dampen this bullish view and would possibly bring another low below 122.40 before reversal.

In the longer term picture, fall from 251.09 is treated as resumption of multi decade down trend. Note that the fall from 215.87 is not treated as the fifth wave, but the third wave inside the third wave that started at 241.35. Another long term decline is still expected after completion of the correction/consolidation from 118.81, towards 100 psychological level.

[m.youssif]

GBP/JPY drew support from mentioned 132.96, 38.2% retracement of 122.40 to 139.99, as well as 55 days EMA and turned sideway. With 132.96 support intact, we'd still expect rebound from 122.40 to resume sooner or later. Above 135.96 minor resistance will flip bias back to the upside for a retest on 139.99 resistance first. Break will target 50% retracement of 163.05 to 122.40 at 142.72 next. However, sustained break of 132.96 will dampen this bullish view and would bring deeper decline to 61.8% retracement of 122.40 to 139.99 at 129.11 and below.

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. Such decline should have completed at 122.40. In other words, the third leg of the consolidation should have started and should target 163.05 and possibly above in medium term. We'll stay bullish in the cross as long as 130.17 support holds. However, break of 130.17 will dampen this bullish view and would possibly bring another low below 122.40 before reversal.

In the longer term picture, fall from 251.09 is treated as resumption of multi decade down trend. Note that the fall from 215.87 is not treated as the fifth wave, but the third wave inside the third wave that started at 241.35. Another long term decline is still expected after completion of the correction/consolidation from 118.81, towards 100 psychological level.