EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.96; (P) 129.59; (R1) 129.97;
EUR/JPY’s recovery was limited below 130.29 minor resistance and intraday bias stays neutral. Another fall is mildly in favor with 130.29 intact. Below 128.32 will resume the decline from 133.12 to 127.85 support first. Break will confirm completion of rebound from 124.89 at 133.12 and bring retest of this low. On the upside, though, above 130.29 will in turn suggest completion of fall from 133.12. In this case, intraday bias will be turned back to the upside for retesting 133.12 high.
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 127.85 will turn focus back to 124.08 key support level.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.70; (P) 146.65; (R1) 147.23;
GBP/JPY breaches 145.67 resistance turned support briefly but quickly recovered. Intraday bias stays neutral first with focus on 145.67. Decisive break there will suggest that the rebound from 139.88 has completed and turn near term outlook bearish again. GBP/USD should target 142.59 support next. On the upside, break of 147.57 will turn bias back to the upside again for 149.70.
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.
