EUR/JPY Daily Outlook
Daily Pivots: (S1) 125.39; (P) 126.08; (R1) 127.03;
EUR/JPY’s strong rebound and break of 126.80 indicates temporary bottoming at 125.13. Intraday bias is now turned neutral for consolidation. Stronger recovery might be see, but upside should be limited well below 128.49 support turned resistance to bring fall resumption. On the downside, break of 125.13 will target 124.61 key support next.
In the bigger picture, focus is back on 124.08 key resistance turned support. Decisive break there will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next. Sustained break there will pave the way to 109.03 and below. Meanwhile, rebound from 124.08 will keep medium term bullishness intact for another high above 137.49.
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8918; (P) 0.8933; (R1) 0.8952;
No change in EUR/GBP’s outlook as it’s staying in corrective trading from 0.9030. While deeper pull back cannot be ruled out, we’d expect downside to be contained by 0.8854 support to bring another rally. Firm break of 61.8% retracement of 0.9305 to 0.8620 at 0.9043 will pave the way to retest 0.9305 key resistance. However, sustained break of 0.8854 will indicate near term reversal and turn outlook bearish.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
