GBP/JPY continues its upward trend, reaching as high as 202.01 after a brief retreat. The initial bias for this week is on the upside, with a target of 202.97. A break above this level could lead to a further increase to 206.56. On the downside, breaking below 200.46 could neutralize the intraday bias, but the overall outlook remains positive as long as the support at 198.90 holds during any potential retreat.
Looking at the bigger picture, the long-term upward trend is still ongoing with the next target at 211.62. The bullish outlook will persist as long as the support at 191.34 remains intact, even in the event of a significant pullback.
Taking a longer-term view, the rise from 122.75 (2016 low) is considered as the third leg of the pattern from 116.83 (2011 low). The focus is now on the 61.8% retracement of the move from 251.09 (2007 high) to 116.83, which stands at 199.80. A decisive break above this level could open the path for a return to 251.09 in the long run.
It is important for traders to monitor key levels and developments in the GBP/JPY pair to make informed trading decisions. Market conditions and external factors can influence price movements, so staying updated with the latest analysis and outlook can help traders navigate the forex market effectively. By considering technical indicators, support and resistance levels, as well as broader market trends, traders can better anticipate potential price movements and manage risk accordingly.