GBP/JPY Daily Outlook
Daily Pivots: (S1) 141.38; (P) 141.93; (R1) 142.38;
Intraday bias in GBP/JPY remains mildly on the downside for 139.29 support. Break will extend the fall from 147.76 and target 135.58 key support level. At this point, price actions from 148.42 are seen as a sideway consolidation pattern. Hence, we'll expect strong support from 135.58 to contain downside and bring rebound. Meanwhile, break of 143.18 will indicate short term reversal and turn bias back to the upside.
In the bigger picture, the sideway pattern from 148.42 is still unfolding. In case of deeper fall, we'd expect strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside. Medium term rise from 122.36 is expected to resume later. And break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. However, firm break of 135.58/39 will dampen the bullish view and turn focus back to 122.36 low.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.12; (P) 129.88; (R1) 130.37;
Break of 129.65 minor support argues that rise from 127.55 is completed at 131.69. Intraday bias is turned back to the downside for 127.55 support first. Firm break there will indicate near term reversal and deeper fall would be seen back to 122.39/125.80 support zone. On the upside, break of 131.69 is needed to confirm rally. Resumption. Otherwise, we'd expect more corrective price action in near term, with risk of deeper fall.
In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.
