Daily Currency Outlook: GPB/JPY, EUR/JPY Rebound Further: June 11, 2013

Daily Pivots: (S1) 152.27; (P) 153.23; (R1) 154.70;

The GBP/JPY rebounded further, breaching 153.58 minor resistance. Intraday bias is back on the upside, and a further rise is on the horizon. A break of 156.77 will extend the larger up trend. Upside potential should be limited, as we expect reversal soon. On the downside, below 152.00 will revive the case that the GBP/JPY has already topped out. In such a case, bias will be flipped back to the downside for 148.18 and then 146.20 support.

The current development argues that a medium term top is in place at 156.77, on bearish divergence condition in daily MACD. A deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. We still expect the 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) 129.54; (P) 130.32; (R1) 131.66;
The current development argues, breaching 130.72 minor resistance. Intraday bias is back on the upside, and a further rally is mildly in favor to 133.80. A break will extend the larger uptrend, but upside potential is limited as we expect reversal soon. On the downside, below 129.17 minor support will revive that case; the EUR/JPY has already topped out. In such a case, bias will be turned back to the downside for 126.15, and then 124.84 support.

Current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Such correction would target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). 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 anticipated correction.
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