GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.60; (P) 147.08; (R1) 147.94;
Intraday bias in GBP/JPY remains neutral as recovery from 144.97 temporary low is in progress. While further rise cannot be ruled out, upside should be limited below 150.92 resistance to bring another decline. Break of 144.97 will extend the fall from 156.69 to 143.51 medium term fibonacci level next. We’ll look for bottoming signal there. But firm break will target 139.29 support.
In the bigger picture, the case for medium term reversal continues to build up. There is bearish divergence condition in daily MACD. 146.96 support was taken out. And GBP/JPY was rejected by 55 month EMA. Break of 38.2% retracement of 122.36 to 156.59 at 143.51 will pave the way to 61.8% retracement at 135.43 and below. This will now be the preferred case as long as 150.92 resistance holds.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.12; (P) 131.43; (R1) 131.94;
No change in EUR/JPY’s outlook. A short term bottom should be in place at 129.34, on bullish convergence condition in 4 hour MACD. Further rise is expected to 38.2% retracement of 137.49 to 129.34 at 132.45. Break will target 61.8% retracement at 134.37. However, decline 137.49 shouldn’t be finished yet. We’d still expect another fall at a later stage. And break of 129.34 will pave the way to 126.61 medium term fibonacci level
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.
