GBP/JPY Daily Outlook
Daily Pivots: (S1) 151.21; (P) 153.37; (R1) 154.47;
GBP/JPY's decline from 156.59 accelerates to as low as 151.19 so far. Brea of 151.95 support indicates short term topping. Intraday bias is back on the downside for 150.18 support first. Considering bearish divergence condition in daily MACD, break of 150.18 will suggest trend reversal and bring deeper fall through 146.96 support. On the upside, above 152.78 minor resistance will turn intraday bias neutral first.
In the bigger picture, 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. In that case, deeper fall would be seen to 38.2% retracement of 122.36 to 156.59 at 143.51 and then 61.8% retracement at 135.43.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.20; (P) 135.68; (R1) 136.45;
EUR/JPY's fall from 134.70 accelerates to as low as 133.96 so far. Breaching of 134.12 support suggests that a short term top is already in place. Considering bearish divergence condition in daily MACD, near term trend could have reversed too. Intraday bias is now on the downside for 132.04 cluster support first (23.6% retracement of 114.84 to 137.49 at 132.14). On the the upside, above 135.29 minor resistance will turn intraday bias neutral first.
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). It should be targeting 141.04/149.76 resistance zone. On the downside, break of 132.04 support, however, will be an early sign of trend reversal and will bring deeper fall back to 124.08 key medium term support.
