GBP/JPY Daily Outlook
Daily Pivots: (S1) 141.49; (P) 141.78; (R1) 142.31
Intraday bias in GBP/JPY remains neutral for consolidation above 141.24 temporary low. Near term outlook stays bearish as long as 144.01 support turned resistance holds. Below 141.24 will extend the fall from 147.76 to 138.65 support and below. As GBP/JPY is seen as staying in consolidation pattern from 148.42, we'd expect strong support from 135.58 to contain downside. On the upside, break of 144.01 will indicate completion of the decline from 147.76 and turn bias back to the upside.
In the bigger picture, the sideway pattern from 148.42 is extending with another leg. But we'd expect strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside. Medium term rise from 122.36 is still expected to resume later. And break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. However, firm break of 135.58/39 will dampen the bullish view and turn focus back to 122.36 low.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.33; (P) 128.74; (R1) 129.44
EUR/JPY's recovery from 128.04 extends higher today. Breach of 129.54 minor resistance argues that pull back from 131.39 has completed at 128.04, supported by 38.2% retracement of 122.39 to 131.39 at 127.95 as expected. Intraday bias is turned back to the upside for retesting 131.39. But break there is needed to confirm up trend resumption. Otherwise, we'd likely see more consolidation first. On the downside, sustained break of 127.95, however, will bring deeper decline to 125.80 cluster support (61.8% retracement at 125.82) before completing the correction.
In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds.
