Daily Currency Outlook: GPB/JPY, EUR/JPY: March 15, 2013

Daily Pivots: (S1) 143.62; (P) 144.31; (R1) 145.62;

GBP/JPY's rebound from 137.87 extends higher today; intraday bias is on the upside for a test on 147.97 resistance. A sustained break is needed to confirm resumption of recent rally. Otherwise, the risk of another fall remains. Meanwhile, below 142.00 will flip bias back to the downside to 38.2% retracement of 118.82 to 147.97 at 136.83 and below, to extend the correction from 147.97.

The medium term fall from 163.05 has already completed at 116.83. It's a bit 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. The medium term rise is now expected to go back to 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) 124.27; (P) 124.75; (R1) 125.45;

With 123.79 minor support intact, rebound from 118.71 could extend higher to retest 127.70 resistance. A break there will confirm resumption of whole rise from 94.11, and should target 130 psychological level next. On the downside, below 123.79 minor support will suggest that consolidation from 127.70 is still in progress, and has started another leg for 118.71 and below. In that case, we'd expect downside to be contained by 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) to complete the consolidation.

The whole down trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in weekly MACD. The rise from there 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 extend to 139.21 resistance and above. We'll stay bullish as long as 111.43 resistance turned support holds.
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