Daily Currency Outlook: GPB/JPY, EUR/JPY

Daily Pivots: (S1) 139.51; (P) 140.21; (R1) 141.32;

With 142.76 resistance intact, the correction from 147.79 is still in progress and could extend to 38.2% retracement of 118.82 to 147.97 at 136.83 and below. We expect strong support above 133.48 medium term level to contain downside and bring rebound. Meanwhile, above 142.76 will turn bias back to the upside for retesting 147.97 high.

In the bigger picture, medium term fall from 163.05 has already completed at 116.83. It's a little early to conclude reversal of the long term down trend from 251.09 (2007 high). 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.

GBP/JPY H4" title="GBP/JPY H4" width="460" height="460">

GBP/JPY" title="GBP/JPY" width="460" height="415">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 120.67; (P) 121.42; (R1) 122.50;

With 122.24 minor resistance intact, the correction from 127.70 could extend lower. But we'd expect downside to be contained by 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) and bring rebound. Meanwhile, above 122.25 will flip bias back to the upside for retesting 127.70 high instead. However, note that break of 117.04 would trigger deeper pull back to 50% retracement at 114.01 and below.

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. The rise isn't finished yet and is expected to continue to 50% retracement of 169.96 to 94.11 at 132.03 next. Eventually, such a rise would likely extend to 139.21 resistance and above. We'll stay bullish as long as 111.43 resistance turned support holds.

EUR/JPY H4" title="EUR/JPY H4" width="460" height="410">

EUR/JPY H4" title="EUR/JPY H4" width="460" height="393">