GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.73; (P) 146.60; (R1) 147.20;
GBP/JPY's decline is still in progress and reaches as low as 145.62 so far. Intraday bias remains on the downside for 143.51 medium term fibonacci level next. On the upside, above 147.47 minor resistance will turn intraday bias neutral first. But outlook will remain bearish as long as 150.92 resistance holds, in case of recovery.
In the bigger picture, the case for medium term reversal continues to build up on loss of medium term momentum as seen in weekly MACD. Also, firm break of 146.96 should now indicate rejection by 55 month EMA (now at 154.60) and add to that case of reversal. 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. This will now be the preferred case as long as 150.92 resistance holds.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.57; (P) 130.54; (R1) 131.05;
Intraday bias in EUR/JPY remains on the downside as fall from 137.49 is in progress. As noted before, a medium term top is likely in place at 137.49 on bearish divergence condition in daily MACD. Deeper decline should be seen to 126.61 medium term fibonacci level next. On the upside, break of 132.17 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development argues that rise from 109.03 has completed at 137.49, on bearish divergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. On the upside, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.
