ActionForex keeps a neutral initial bias on GBP/JPY for the week ahead after the pair retreated from 213.75. A break above 213.75 would target 217.45, while a firm break below 209.54 would bring a retest of 206.85.
GBP/JPY rose further to 213.75 last week but has retreated since. ActionForex says the initial bias stays neutral this week, with risk on the upside.
If the pair breaks 213.75, the rebound from 206.85 would resume and target resistance at 217.45. However, a firm break of 209.54 support would indicate that the rebound has completed and bring a retest of the 206.85 low.
In the bigger picture, ActionForex reads the price action from 219.56 as correcting the up trend from 184.35, the 2025 low. A deeper fall could reach 206.10, the 38.2% retracement of 184.35 to 219.56, where ActionForex expects strong support to bring a rebound.
A decisive break below that level, however, would raise the chance of a larger trend reversal and target the 61.8% retracement at 197.80.
In the long term, ActionForex sees the up trend from 116.83 still in progress, the 2011 low, with 251.09, the 2007 high, as the next target. That remains the favored case as long as the 55 M EMA, now at 191.13, holds.
Source: ActionForex
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