Detailed FX Market Outlook and Analysis

GBP/JPY Daily Analysis 18-MAY-2022

GBP/JPY Daily Analysis

Intraday bias in GBP/JPY remains neutral first. Risk will stay on the downside as long as 162.16 minor resistance holds, as a correction from 168.40 could extend. On the downside, below 155.57 will target 150.95 key structural support next. Nevertheless, a firm break of 162.16 will indicate that the correction has been completed, and bring a retest of 168.40 high next.

In the bigger picture, the uptrend from 123.94 (2020 low) is still in progress. A sustained break of 61.8% retracement of 195.86 (2015 high) to 122.75 (2016 low) at 167.93 will be a long-term bullish signal and could pave the way back to the 195.86 high. This will now remain the favored case as long as 150.95 support holds, even in case of deep pullback. However, a firm break of 150.95 will indicate rejection by 167.93, and a bearish trend reversal.

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