EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.35; (P) 128.19; (R1) 128.78;
EUR/JPY’s breach of 127.83 minor support suggests that fall from 130.14 might be ready to resume. Intraday bias is turned back to the downside for 126.63 low first. Break there will then resume the whole decline from 133.12 to 124.08/89 support zone. And, even in case of recovery, outlook will stay bearish as long as 130.14 resistance holds.
In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) is still in progress. 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.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.59; (P) 143.67; (R1) 144.51;
GBP/JPY’s decline from 149.48 extends to low as 142.83 so far. Intraday bias remains on the downside and break of 142.76 will pave the way to 139.29/47 key support zone. On the upside, break of 145.51 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain cautiously bearish even in case of recovery.
In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) would still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish. In that case, next target is 61.8% retracement at 135.43.
