EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.06; (P) 129.67; (R1) 130.04;
EUR/JPY drops sharply after hitting 130.26 and intraday bias is turned neutral for some consolidations. Another rise is expected long as 127.78 minor support holds. Above 130.26 will target 131.34 first. And break will target 133.47 key resistance next. However, break of 127.78 will indicate completion of the rebound and turn bias to the downside for retesting 124.61 instead.
In the bigger picture, as long as 124.08 resistance turned support holds, medium term rise from 109.03 (2016 low) is still in progress and another high above 137.49 would be seen. Nonetheless, considering bearish divergence condition in daily MACD, decisive break of 124.08 will confirm medium term reversal and target 61.8% retracement of 109.03 to 137.49 at 119.90 and below.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.71; (P) 147.42; (R1) 147.94;
GBP/JPY dropped sharply after hitting 148.10 and intraday bias is turned neutral first. Another rise is expected as long as 145.82 minor support holds. Above 148.10 will target 149.99 resistance first. Break there will pave the way to retest 153.84 high. However, break of 145.82 will argue that the rebound is completed and bring retest of 143.18 low.
In the bigger picture, no change in the view that decline from 156.59 is a corrective move. In case of another fall, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. Meanwhile, break of 153.84 should confirm that the correction is completed and target 156.59 and above to resume the medium term up trend.
