GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.28; (P) 147.06; (R1) 147.46;
GBP/JPY is staying in range of 145.82/148.10 and intraday bias remains neutral first. On the upside, above 148.10 will resume the rebound from 143.18 and target 149.99, and then 153.84 resistance. However, break of 145.82 minor support will argue that the rebound from 143.18 is completed and bring retest of this low.
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.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.11; (P) 128.73; (R1) 129.59;
Focus is now on 127.78 support after the sharp decline from 130.33. Firm break there will confirm completion of the rebound from 124.61. Retest of 124.61 should be seen back then. Nonetheless, break of 103.33 will resume the rebound from 124.61 to retest 133.47 high.
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.
