Daily Currency Outlook: GBP/JPY Turns Neutral, EUR/JPY Loses Some Upside

Daily Pivots: (S1) 155.09; (P) 155.57; (R1) 156.18;

Intraday bias in GBP/JPY turned neutral, and some consolidations could be seen below 156.77 temporary top. A further rise is still expected as long as 153.26 minor support holds. The current rally is 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 rally is impulsive or corrective in nature, it's at least a move at the same degree as fall from 163.05. We'd expect 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) 131.60; (P) 132.18; (R1) 132.84;

While EUR/JPY lost some upside movement, retreat is shallow so far. A further rally is still expected with 130.41 intact. The larger uptrend from 94.11 is still in progress, and should target 61.8% projection of 100.32 to 127.70, from 119.10 at 136.02 next. On the downside, below 130.41 minor support will turn bias neural and bring consolidation. Near term outlook will stay bullish, as long as 127.05 support holds.

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. Break of 124.84 support is needed to be the first sign of medium term topping. Outlook will stay bullish.

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