GBP/JPY Daily Outlook
Daily Pivots: (S1) 141.66; (P) 142.19; (R1) 142.68;
GBP/JPY recovers further today but stays below 144.01 support turned resistance. Intraday bias remains neutral with bearish near term outlook. 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) 128.82; (P) 129.23; (R1) 129.57;
Intraday bias in EUR/JPY remains on the upside as rebound from 128.04 would target retesting 131.39 high. Break there is needed to confirm up trend resumption. Otherwise, we'd likely see more consolidation first. On the downside, below 128.91 minor support will turn bias to the downside for another fall. At this point, we'd still expect strong support from 38.2% retracement of 122.39 to 131.39 at 127.95 to bring rebound. But sustained break of 127.95 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.
