GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.62; (P) 145.57; (R1) 147.27; More
GBP/JPY's rise from 139.29 is still in progress and intraday bias remains on the upside for 147.76/148.42 resistance zone. Decisive break there will confirm resumption of medium term rebound from 122.36. On the downside, below 145.32 minor support will turn intraday bias neutral first. Overall, for the moment, GBP/JPY is still bounded in sideway consolidation pattern from 148.42.
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) 131.02; (P) 131.46; (R1) 132.25;
EUR/JPY's break of 131.69 resistance confirms resumption of larger rally. Intraday bias is back on the upside. Current rise should target 134.20 fibonacci level next. On the downside, break of 129.36 support is now needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, current rise from 109.03 is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). as long as 124.08 resistance turned support holds, 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. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.
