GBP/JPY Daily Outlook
Daily Pivots: (S1) 150.62; (P) 151.21; (R1) 151.91;
GBP/JPY failed to sustain above 152.82 resistance and formed a temporary top at 152.93 and retreated. Intraday bias stays neutral for the moment. As long as 146.96 support holds, near term outlook remains bullish. Break of 152.93 will resume medium term rally and target 61.8% projection of 139.29 to 152.82 from 146.96 at 155.32.
In the bigger picture, medium term rebound from 122.36 is still expected to resume after consolidation from 152.82 completes. Firm break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. In that case, GBP/JPY could target 61.8% retracement at 167.78. However, break of 46.96 support will indicate rejection from 150.43 key fibonacci level. And the three wave corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 132.84; (P) 133.29; (R1) 133.58;
Intraday bias in EUR/JPY remains neutral as it's staying in corrective trading below 134.37 temporary top. We're favoring the case that medium term up trend is nearly ready to resume. Break of 134.48 will target 61.8% projection of 127.55 to 134.48 from 131.16 at 135.44 and then 100% projection at 138.09. However, firm break of 131.16 support will now indicate near term trend reversal and turn outlook bearish for 127.55 key support.
In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). 61.8% retracement of 149.76 to 109.03 at 134.20 is already met. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. However, break of 127.55 support will suggest medium term topping and will turn outlook bearish for deeper fall back to 114.84/124.08 support zone at least.
