GBP/JPY Daily Outlook
Daily Pivots: (S1) 151.01; (P) 152.06; (R1) 152.79;
GBP/JPY's decline resumed after brief consolidation and intraday bias is back on the downside for 150.18 support. . Considering bearish divergence condition in daily MACD, the near term trend could have reversed. Break of 150.18 will affirm this case and target 146.96 key support level.
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) 132.48; (P) 133.63; (R1) 134.34;
EUR/JPY's decline from 137.49 is still in progress and intraday bias remains on the downside for 132.04 cluster support first (23.6% retracement of 114.84 to 137.49 at 132.14). Decisive break there will indicate larger trend reversal on bearish divergence condition in daily MACD. On the upside, though, above 134.79 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.
