EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.24; (P) 127.59; (R1) 128.09;
Intraday bias in EUR/JPY is turned neutral with a temporary low formed at 126.63. But deeper decline is still expected with 128.50 minor resistance holds. Rebound from 124.61 could have finished at 130.33 already, after rejection by 55 day EMA. Below 126.63 will target a test on 124.08/61 support zone. Nonetheless, break of 128.50 will turn focus back to 130.33.
In the bigger picture, despite rebounding strongly ahead of 124.08 resistance turned support, there was no clear follow through buying. Note again that there is bearish divergence in daily MACD. 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. Nonetheless, decisive break of 133.47 key resistance will likely extend the rise from 109.03 through 137.49 high.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.77; (P) 145.19; (R1) 145.80;
A temporary low is in place at 144.37 and intraday bias is turned neutral first. Further fall is expected with 146.46 minor resistance intact. Below 144.37 will target 143.18 first. Break will will resume larger decline from 156.59 and target 139.25/47 cluster support level. Nonetheless, above 146.46 will turn focus back to 148.10 resistance 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.
