Overview
GBP/JPY dropped sharply last week and reached the mark of 170.36. The development confirmed a medium term-trend reversal. Initial bias remains on the downside this week for the next long-term Fibonacci level at 165.67. On the upside, breaks above minor resistance at 173.35 will turn bias neutral and bring consolidations first. But recovery should be limited below the 180.36 support turned into resistance and bring fall resumption. In the longer-term picture, the uptrend from the 116.83 long-term bottom should have made a medium-term top at 195.86. We expect price actions from 195.86 to develop into a corrective pattern. Such an uptrend should resume at a later stage after the correction completes.