Daily Currency Outlook: GBP/JPY Still Neutral, EUR/JPY Turns Neutral

Daily Pivots: (S1) 155.28; (P) 155.86; (R1) 156.35;

Intraday bias in GBP/JPY remains neutral for the moment and some consolidations could be seen below 156.77 temporary top. Further rise is still expected as long as 153.26 minor support holds. The current rally is still in progress and should target 100% projection of 125.67 to 147.97 from 140.37 at 162.67, which is close to 163.05 key resistance. On the downside, though, a break of 153.26 will indicate short term topping and bring deeper pull back.

The medium term rise from 116.83 is still in progress. As noted before, whether such a rally is impulsive or corrective in nature, it's at least a move at the same degree as fall from 163.05. We expect the current rise to extend to 163.05 resistance and above. We'll stay bullish as long as 146.42 support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 131.14; (P) 131.78; (R1) 132.40;

A temporary top should be in place at 132.76 in the EUR/JPY and intraday bias has turned neutral for some consolidations first. Downside of retreat should be contained above 127.05 support and bring another rise. Above 132.76 will extend the larger up trend to 61.8% projection of 100.32 to 127.70, from 119.10 at 136.02 next.

In the bigger picture, whole down trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in weekly MACD. A rise from there has already met mentioned 50% retracement of 169.96 to 94.11 at 132.03, and there is no clear sign of reversal. Such a rally should now extend through 139.21 resistance to 61.8% retracement at 140.98. A break of 124.84 support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
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