EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.78; (P) 130.27; (R1) 130.67;
EUR/JPY’s break of 129.90 argues that rise from 124.61 has completed at 131.97 already, on bearish divergence condition in 4 hour MACD. Intraday bias is back on the downside for 127.13 support first. Break there will confirm this bearish case and target 124.61 low. On the upside, break of 131.97 is now needed to indicate resumption of rise from 127.13. Otherwise, risk will stay mildly on the downside even in case of rebound.
In the bigger picture, the strong break of channel resistance from 137.49 suggests that the decline from there has completed. The three wave structure suggests that it’s a correction. With 124.08 key resistance turned support intact, medium term bullishness is also retained. Break of 133.47 will affirm this bullish case and target 137.49 and above. This will now be the favored case as long as 127.13 support holds.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.54; (P) 145.99; (R1) 146.30;
Intraday bias in GBP/JPY remains on the downside for the moment. Consolidation pattern from 143.18 has completed with three waves up to 149.30 already. Deeper fall should be seen back to 143.18/76 support zone. On the upside, above 147.65 minor resistance will turn bias back to the upside for 149.30/99 resistance zone instead.
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.
