GBP/JPY Daily Outlook
Daily Pivots: (S1) 152.96; (P) 153.31; (R1) 153.76;
No change in GBP/JPY's outlook even though it's losing upside momentum. As long as 151.74 minor support holds, further rally is expected. Current rise should target 61.8% projection of 139.29 to 152.82 from 146.96 at 155.32 first. Break will target 100% projection at 160.49 next. However, firm break of 151.74 will turn focus back to 149.40 support instead.
In the bigger picture, it now looks like GBP/JPY has finally taken out 38.2% retracement of 195.86 to 122.36 at 150.43. Medium term rise from 122.36 should be targeting 61.8% retracement at 167.78. This will now be the favored case as long as 146.96 support remains intact.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.87; (P) 135.59; (R1) 136.05;
The pull back from 136.63 extends lower today. But at this point, we'd still downside to be contained by 134.39 resistance turned support to bring another ally. Above 136.63 will extend the larger up trend towards 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12. Nonetheless, firm break of 134.39 will be an early sign of trend reversal and turn focus back to 132.04 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). It should now be targeting 141.04/149.76 resistance zone. On the downside, break of 132.04 support is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bullish in case of pull back.
