GBP/JPY Daily Outlook
Daily Pivots: (S1) 149.70; (P) 151.14; (R1) 151.94;
The sharp fall from 153.66 is now taken as an early sign of trend reversal in GBP/JPY. Intraday bias is now on the downside for 149.40 support first. Break will target 146.96 key support next. On the upside, above 151.74 minor resistance will turn intraday bias neutral.
In the bigger picture, considering bearish divergence condition in daily MACD, the steep fall from 153.66 is now seen as first sign of trend reversal. Focus will turn to 146.96 support. Firm break there will at later confirm medium term topping and target 139.39 support next.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 132.62; (P) 133.58; (R1) 134.10;
EUR/JPY's decline from 136.63 is still in progress and intraday bias remains on the downside for 132.04 support. Decisive break there will confirm medium term trend reversal. On the upside, above 134.03 minor resistance will turn intraday bias neutral first. But risk will stay on the downside as long as 136.63 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). It should now be targeting 141.04/149.76 resistance zone. On the downside, break of 132.04 support is needed to indicate medium term reversal. Otherwise, outlook will stay bullish in case of deep pull back.
