EUR/JPY Daily Outlook
Daily Pivots: (S1) 1.5854; (P) 1.5881; (R1) 1.5923;
EUR/JPY’s rally extends to as high as 130.04 so far and intraday bias stays on the upside. Current rally from 124.89 should target resistance zone between 131.97 and 61.8% retracement of 137.49 to 124.61 at 132.56. On the downside, below 128.78 minor support will turn intraday bias neutral and bring consolidations first.
In the bigger picture, EUR/JPY once again rebounded ahead of 124.08 key resistance turned support. It’s also held above long term trend line from 109.03 (2016 low). The development argues that such rise from 109.03 might now be over yet. Decisive break of 61.8% retracement of 137.49 to 124.61 at 132.56 will pave the way to retest 137.49 high. But, firm break of 124.08 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.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.74; (P) 143.01; (R1) 143.50;
GBP/JPY’s rebound from 139.88 is still in progress for 55 day EMA (now at 144.68) even though upside momentum is diminishing. On the downside, however, below 141.92 minor support will indicate completion of the rebound. And larger down trend will likely resume for 139.29/47 key support zone instead.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the downside acceleration makes this view shaky. Focus will be on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).
