GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.94; (P) 147.60; (R1) 148.15;
Intraday bias in GBP/JPY is turned neutral with a temporary low formed at 147.04. Some consolidations could be seen with risk of recovery to 4 hour 55 EMA (now at 149.38). But upside should be limited below 150.60 support turned resistance to bring another decline. Below 147.04 will target 144.97 first. Break there will resume the fall from 156.59 and target 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next.
In the bigger picture, for now, we’re treating price actions from 156.59 as a corrective move. Therefore, while deeper fall is expected, 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. There is still prospect of extending the rise from 122.36. However, considering that GBP/JPY failed to sustain above 55 month EMA (now at 153.94), firm break of 139.29 will confirm trend reversal and turn outlook bearish.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1941; (P) 1.1960; (R1) 1.1973;
No change in EUR/CHF’s outlook as consolidation from 1.2004 is in progress. Intraday bias remains neutral first. Also as 1.1888 minor support is still holding, further rise is expected. On the upside, sustained break of 1.2 level will extend larger up trend to 61.8% projection of 1.0629 to 1.1832 from 1.1445 at 1.2188. However, consider bearish divergence condition in 4 hour MACD, break of 1.1888 will indicate short term topping. In that case, deeper pull back would be seen back to 1.1445/1832 support zone.
In the bigger picture, long term up trend in EUR/CHF is still in progress. Prior SNB imposed floor at 1.2000 was already met but there is no sign of reversal yet. As long as 1.1445 support holds, we’d expect the up trend to extend to 2013 high at 1.2649 next.
