EUR/JPY Daily Outlook
Daily Pivots: (S1) 125.87; (P) 126.17; (R1) 126.73;
A temporary low is in place at 125.52 in EUR/JPY with the current recovery. Intraday bias is turned neutral for consolidation first, but near-term outlook will remain bearish as long as the 127.63 resistance holds. On the downside, below 125.52 will target 124.08/89 support zone next.
In the bigger picture, with the current decline, the focus would be back on 124.08 key resistance turn supported holds. As long as 124.08 key resistance turn supported holds, the larger up trend from 109.03 (2016 low) could still resume. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish. In that case, deeper fall would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7041; (P) 0.7057; (R1) 0.7083;
AUD/USD continues to lose downside momentum as seen in 4-hour MACD, but with 0.7148 resistance intact, further fall is still expected to 0.7020 support. Decisive break there will resume a larger decline from 0.8135 for 0.6826 key support. However, firm break of 0.7148 will suggest that correction from 0.7020 is extending with another rise. Intraday bias will then be turned back to the upside for 0.7393 resistance.
In the bigger picture, price actions from 0.7020 are corrective in nature. In case such corrective pattern extends, upside should be limited by 38.2% retracement of 0.8135 to 0.7020 at 0.7446 to bring down trend resumption. Firm break of 0.7020 will extend medium-term decline from 0.8135 to retest 0.6826 (2016 low).
