Daily Currency Outlook: GPB/JPY, EUR/JPY

Daily Pivots: (S1) 146.37; (P) 147.14; (R1) 148.44;

Intraday bias in GBP/JPY remains neutral for the moment and some more consolidative trading could be seen. Above 147.97 would extend recent rally to a 150 psychological level next. Though below 144.86 will likely bring deeper pull back to 139.25 support before uptrend resumption.

In the bigger picture, medium term fall from 163.05 has already completed at 116.83. It's a bit early to conclude reversal of the long term downtrend from 251.09 (2007 high). But a rise from 116.83 should at least be a move at the same degree as a fall from 163.05. Thus, medium term rise is now expected back at 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.39; (P) 125.51; (R1) 127.53;

EUR/JPY recovers after dipping to 123.42, but is staying below 127.70. Intraday bias is neutral for the moment and consolidations might extend. Below 123.42 will bring another fall to 120.70 resistance turned support and possibly below. But we'd expect strong support from 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) to contain downside and bring rebound. Recent uptrend from 94.11 is still expected to continue for 130 psychological level after completing the correction.

In the bigger picture, whole dow trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in weekly MACD. 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) has already been met. Sustained trading above this level will target 61.8% retracement at 140.98. We'll stay bullish as long as 111.43 resistance turned support holds.

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