Daily Currency Outlook: GPB/JPY, EUR/JPY

Daily Pivots: (S1) 144.92; (P) 145.40; (R1) 145.79;

The correction from 147.97 is possibly still in progress and below 142.76 will bring another fall to 55 days EMA (now at 140.84). But the downside should be contained by 139.25 (38.2% retracement of 125.67 to 147.97 at 139.45 and bring a rebound. We'd expect the recent up trend to resume later and above 147.97 will target the 150 psychological level next.

In the bigger picture, medium term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long term down trend 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 to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.
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GBP/JPY" title="GBP/JPY" width="483" height="291">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.99; (P) 125.44; (R1) 125.89;

EUR/JPY's consolidation pattern from 127.70 is still in progress, and intraday bias remains neutral. Another fall could be seen and below 122.89 would bring fall to 120.70 resistance turned support. But downside should be contained above 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) and bring rebound. Recent rally is expected to resume later and break of 127.70 will confirm rise resumption for 130 psychological level.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, 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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EUR/JPY" title="EUR/JPY" width="483" height="291">