GBP/JPY Daily Outlook
Daily Pivots: (S1) 151.46; (P) 151.72; (R1) 151.95;
Breach of 152.07 suggests that GBP/JPY's rebound from 149.40 is resuming. Intraday bias is back on the upside for 153.39 resistance. Break will resume medium term rally. In any case, further rally will remain in favor as long as 150.36 minor support holds.
In the bigger picture, outlook is mixed up a bit with last week's sharp decline. But still, as long as 146.96 key support holds, medium term outlook remains bullish. Rise from 122.36 is in favor to extend to 61.8% retracement of 195.86 to 122.36 at 167.78. However, break of 146.96 support will indicate trend reversal. And the corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
GBP/JPY 4 Hours Chart
Daily Pivots: (S1) 134.51; (P) 134.74 (R1) 135.03;
Intraday bias in EUR/JPY remains neutral at this point. On the upside, firm break of 134.97 will resume medium term rally and target 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12. While another corrective fall cannot be ruled out, near term outlook stays bullish as long as 132.04 support holds.
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). Sustained break of 61.8% retracement of 149.76 to 109.03 at 134.20 will pave the way to key long term resistance zone at 141.04/149.76. However, break of 132.04 support will suggest medium term topping and will turn outlook bearish for deeper fall back 55 week EMA (now at 127.82).
