EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.34; (P) 129.66; (R1) 130.07;
EUR/JPY’s rebound continues today and edges higher to 130.16 so far. Focus stays on 130.33 resistance. Decisive break there will resume the rebound from 124.61. More importantly, the sustained break of near term falling channel would be a strong sign of trend reversal. In this case, further rise should be seen to 133.47 resistance for confirmation. On the downside, below 128.49 minor support will turn bias to the downside for 127.13 support. Break will target a test on 124.61 low.
In the bigger picture, for now, EUR/JPY is holding above 124.08 key resistance turned support. Fall from 137.49 could be proven to be a correction. Decisive break of 133.47 resistance will confirm its completion and should extend the rise from 109.03 (2016 low) through 137.49 high. However, firm break of 124.08 will confirm trend reversal. That is, whole rise from 109.03 (2016 low) has completed at 137.49 already. In that case, deeper fall should be seen back to 61.8% retracement of 109.03 to 137.49 at 119.90 and below.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.33; (P) 146.56; (R1) 147.03;
GBP/JPY’s rebound form 143.76 is still in progress and reaches as high as 147.27 so far. Focus is now on 148.10 resistance. Decisive break there will be a strong signal of near term reversal. Further rally would be seen to 149.99 resistance for confirmation. On the downside, break of 143.18 low will extend the fall from 156.59 for 139.25/47 cluster support level.
In the bigger picture, no change in the view that decline from 156.59 is a corrective move. In case of another fall, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. Meanwhile, break of 153.84 should confirm that the correction is completed and target 156.59 and above to resume the medium term up trend.
