GBP/JPY Daily OutlookDaily Pivots: (S1) 120.80; (P) 121.29; (R1) 121.88;
GBP/JPY is still staying in range of 120.75/122./.56 and intraday bias remains neutral. Break of 120.75 will indicate that choppy recovery from 119.37 is finished will flip bias back to the downside for this support first. Break will confirm resumption of fall from 127.30 and should target a test on 116.96 low next. On the upside, above 122.56 will bring another rise to extend the recovery from 119.37. But we'd expect upside to be limited by 50% retracement of 127.30 to 119.37 at 123.33 and bring fall resumption eventually.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 127.67). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 102.27; (P) 103.08; (R1) 103.53;
EUR/JPY's break of 103.00 minor support affirms the cas that recent fall from 111.57 is resuming. Intraday bias is back on the downside for 102.48 support first. Break will confirm this bearish case and target a test on 100.74 low. On the upside, above 104.40 minor resistance will dampen this immediate bearish view and indicate that consolidation from 102.48 is still in progress for another rising leg before completion.
In the bigger picture, there is no signal of reversal yet with EUR/JPY staying below the falling 55 weeks EMA. Down trend from 2008 high of 169.96 is still in progress and should take out 100 psychological level eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. Though, sustained break of 55 weeks EMA (now at 111.04) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.
