Daily Currency Outlook: GPB/JPY, EUR/JPY: July 17, 2013

Daily Pivots: (S1) 149.57; (P) 150.33; (R1) 150.96;

The strong rise in GBP/JPY and break of 151.61 minor resistance suggests that the pull back from 153.01 is completed at 148.77 already. It also indicates that rebound from 147.10 is noted completed. Intraday bias is back on the upside for 153.01 first. Break will target 154.22 and above. We'll maintain caution on reversal below 156.77 as consolidation from there might extend with another falling leg.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, westill expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 130.02; (P) 130.42; (R1) 130.82;

The EUR/JPY rises further as high as 131.35 so far today and the break for 131.11 indicates resumption of rebound from 124.95. Intraday bias is back on the upside for 133.80 resistance. However, we'll be cautious on reversal below 133.80 as consolidation from there might extend with another falling leg.

In the bigger picture, current development argues that the medium term uptrend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Correction from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. Break will target 61.8% retracement at 109.27. Considering the five wave structure of the rise from 94.11, we expect another medium term rally after completing the correction.
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