EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.96; (P) 132.14; (R1) 132.49;
Intraday bias bias in EUR/JPY remains neutral for consolidation below 132.89 temporary top. For now, downside of retreat should be contained by 131.09 minor support to bring another rise. Above 132.89 will extend the rebound from 128.94 to 61.8% retracement of 137.49 to 128.94 at 134.22 and above. On the downside, below 131.09 will indicate that the rebound is completed and bring retest of 128.94 low instead.
In the bigger picture, price action from 137.49 medium term top are developing into a corrective pattern. Strong support from 55 week EMA (now at 129.91) suggests that the first leg has completed at 128.94 already. Nonetheless, break of 137.49 is needed to confirm resumption of the rise from 109.03 (2016 low). Otherwise, we’d expect more corrective range trading, with risk of another fall to 38.2% retracement of 109.03 to 137.49 at 126.61 before completion.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 152.30; (P) 153.07; (R1) 153.57;
Intraday bias in GBP/JPY remains neutral for consolidation below 153.83 temporary top. Downside of retreat should be contained above 150.58 to bring another rally. Above 153.83 will extend the rise from 144.97 to retest 156.69 high. However, break of 150.58 will suggest that such rebound from 144.97 has completed and bring retest of this support.
In the bigger picture, price actions from 156.59 are viewed as a corrective pattern. For now, we’d expect at least one more fall for 38.2% retracement of 122.36 to 156.59 at 143.51 before the consolidation completed. Though, firm break of 156.59 will resume whole up trend from 122.36 (2016 low) to 50% retracement of 195.86 (2015high) to 122.36 at 159.11 next.
