GBP/JPY Daily Outlook
Daily Pivots: (S1) 141.07; (P) 141.88; (R1) 143.10
Break of 142.46 minor resistance suggests short term bottoming at 139.89. Intraday bias is back on the upside for further rebound to 4 hour 55 EMA (now at 144.92). On the downside, below 141.32 minor support will extend larger down trend and turn focus back to 139.29/47 key support zone instead.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the current downside accelerate makes this view shaky. Focus will be 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/JPY Daily Outlook
Daily Pivots: (S1) 126.55; (P) 127.31; (R1) 128.36
EUR/JPY’s rebound from 124.89 extended by breaking 126.98 resistance decisively. Intraday bias stays on the upside for 55 day EMA (now at 127.79). Sustained trading above there will target 131.97 key resistance next. On the downside, below 126.60 minor support will bring retest of 124.61/89 support zone instead.
In the bigger picture, focus is back on 124.08 key resistance turned support. Decisive break there will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next. Sustained break there will pave the way to 109.03 and below. Meanwhile, rebound from 124.08 will keep medium term bullishness intact for another high above 137.49.
