GBP/JPY Daily Outlook
Daily Pivots: (S1) 151.59; (P) 152.05; (R1) 152.59;
GBP/JPY's rebound form 149.40 resumed and intraday bias is cautiously on the upside for 153.39 resistance. Break will resume medium term rally. On the downside, below 151.17 minor support will extend the corrective pattern with another fall through 149.40 before completion.
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.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.64; (P) 135.07 (R1) 135.61;
EUR/JPY's really resumed and reaches as high as 135.62 so far today. Intraday bias is back on the upside. Medium term rally is in progress and should target 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12. On the downside, below 134.53 minor support will turn intraday bias neutral again.
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 128.34).
