GBP/JPY Daily Analysis
At present, the intraday bias for GBP/JPY is neutral, but there is a preference for a further rally. If the 172.30 resistance level is broken, it will likely continue the upward trend towards 178.51, which represents a 100% projection of the previous move from 148.93 to 172.11 starting from 155.33. However, if the 167.95 support level is strongly breached, it could confirm a short-term top and shift the bias towards a deeper pullback to the 165.40 support level.
Looking at the bigger picture, the upward trend from the 2020 low of 123.94 appears to be ready to continue, based on current momentum. The next target is expected to be the 161.8% projection of the move from the 2016 low of 122.75 to the 2018 high of 156.59 starting from 123.94, which is at 178.69. As long as the 165.40 support level holds, this remains the favored scenario even in case of a retreat.
