Daily Pivots: (S1) 206.68; (P) 207.25; (R1) 208.34; More…
GBP/JPY has experienced a sharp decline and a strong break of the 206.12 support level, indicating that a short term peak may have been reached at 208.09. This is supported by bearish divergence in the 4-hour MACD. While further downward movement is possible, it is likely to be limited by the 38.2% retracement level of 191.34 to 208.09 at 201.69. This could lead to a rebound and establish a consolidation range below 208.09.
In the broader picture, the long-term uptrend remains intact. The next target is the 100% projection of the move from 155.33 to 188.63 from 178.32, which comes in at 211.62. The outlook will remain positive as long as the 200.72 resistance turned support level holds, even in the event of a significant pullback.