EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.62; (P) 129.94; (R1) 130.48;
Despite losing downside momentum as seen in 4 hour MACD, deeper fall is expected with 130.86 minor resistance intact. As noted before, EUR/JPY’s rebound from 124.61 could have completed at 131.97 already. Break of 127.13 will confirm this bearish case and target 124.61 low. On the upside, though, above 130.86 minor resistance will dampen this bearish cas and bring retest of 131.97 instead.
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) 145.92; (P) 146.23; (R1) 146.67;
No change in GBP/JPY’s outlook. Deeper fall is expected to 143.18/76 support zone. Break will resume larger decline from 156.59. On the upside, though, 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.
