GBP/JPY Daily Outlook
Daily Pivots: (S1) 152.77; (P) 153.39; (R1) 153.97;
GBP/JPY's fall from 156.07 is still in progress and intraday bias remains on the downside for 150.18 support. As 156.07 is seen as a short term top. Break of 15018 will target 149.96 key support level. On the upside, above 154.01 minor resistance will turn intraday bias neutral first. But risk will now stay on the downside as long as 156.07 resistance holds.
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. And there would be prospect of retesting 122.36 in that case.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.37; (P) 134.85; (R1) 135.39;
Intraday bias in EUR/JPY remains neutral but outlook stays bullish with 133.03 support intact. Break of 136.63 will resume medium term up trend. However, on the downside, break of 133.03 will have 55 day EMA and medium term channel support firmly taken out. Also, considering bearish divergence condition in daily MACD too, that will suggest medium term reversal. Deeper fall should then be seen to 132.04 support for confirmation.
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 is needed to indicate medium term reversal. Otherwise, outlook will stay bullish in case of deep pull back.
