EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.10; (P) 129.63; (R1) 130.10;
EUR/JPY is staying in consolidation above 129.11 and intraday bias remains neutral first. Near term outlook stays bearish with 130.70 resistance intact and further fall is expected. On the downside, break of 129.11 will target 127.85 support first. Break there will confirm completion of rebound from 124.89 at 133.12 and bring retest of this low. On the upside, though, above 130.70 minor resistance will turn bias back to the upside for 133.12 instead.
In the bigger picture, current development suggests that EUR/JPY could have defended key support level of 124.08 key resistance turned support. And, the 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. This will be the preferred case as long as 127.85 near term support holds. However, break of 127.895 will turn focus back to 124.08 key support level.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 147.11; (P) 147.69; (R1) 148.32;
No change in GBP/JPY’s outlook. Consolidation from 149.70 is still in progress and intraday bias stays neutral. In case of another fall, outlook will remain cautiously bullish as long as 145.67 resistance turned support holds. On the upside, above 149.70 will target 153.84/156.69 resistance zone next. However, break of 145.67 will suggest that the rebound from 139.88 has completed and turn near term outlook bearish again.
In the bigger picture, current development suggests that GBP/JPY has successfully defended 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). And, the rally from 122.36 (2016 low) is still intact. Such medium to long term rise would extend through 156.96 high. This will now be the preferred case as long as 145.67 near term support holds. However, break of 145.67 will turn focus back to 139.29/47 key support zone.
