Daily Currency Outlook: GPB/JPY, EUR/JPY

Daily Pivots: (S1) 153.09; (P) 153.52; (R1) 153.83;

GBP/JPY's sharp fall and break of 151.73 minor support suggests that rebound from 147.61 has completed at 154.67 already. Intraday bias is back on the downside. Overall outlook is unchanged. Price action from 156.77 is a correction pattern and is still in progress. Break of 147.61 will target next medium term fibo level at 142.27. On the upside, in case of another rise, we'd expect strong resistance below 156.77 and bring reversal to extend the consolidation from 156.77.

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 as consolidation from there extends. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still 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) 129.25; (P) 130.50; (R1) 131.16;

Intraday bias in EUR/JPY remains on the downside for 127.95 support. Overall outlook is that consolidation pattern from 133.80 top is still in progress. Break of 127.96 will suggest that the third leg of the pattern has started and should target 124.95. In case of another rise, we'd expect strong resistance below 133.80 to bring another fall to extend the consolidation.

In the bigger picture, medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Consolidation 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. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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