GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.57; (P) 143.30; (R1) 143.76;
GBP/JPY’s breach of 142.81 minor support argues that rebound from 139.88 has completed at 145.67. Intraday bias is back on the downside for retesting 139.88 first. Break will target 139.29/47 key support zone. On the upside, above 144.20 minor resistance will turn bias back to the upside for 145.67 and possibly above.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. Focus remains on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.6063; (P) 1.6119; (R1) 1.6160;
A temporary top is formed at 1.6171 in EUR/AUD, just ahead of 1.6189 resistance and intraday bias is turned neutral first. Some consolidations could be seen. But retreat should be contained by 1.5886 resistance turned support to bring another rally. On the upside, firm break of 100% projection of 1.5271 to 1.5886 from 1.5601 at 1.6216 will extend the larger up trend to 161.8% projection at 1.6596, which is close to another key resistance level at 1.6587.
In the bigger picture, EUR/AUD drew strong support from 55 week EMA and rebounded. And the development argues that medium term rally from 1.3624 (2017 low) is still in progress. Firm break of 1.6189 will target a test on 1.6587 (2015 high). On the downside, break of 1.5601 support will now be the first sign of medium term reversal, and will bring a test on 1.5271 key support for confirmation.
