GBP/JPY Daily Outlook
Daily Pivots: (S1) 120.30; (P) 120.71; (R1) 121.14;
Intraday bias in GBP/JPY remains cautiously on the downside for the moment. Recovery from 119.37 should have finished at 122.56 already. Deeper decline should be seen to retest 119.37 first. Break will confirm resumption of fall from 127.30 and should target a test on 116.83 low next. On the upside, above 121.78 minor resistance will dampen this immediate bearish case and bring another rise to extend the recovery from 119.37. But after all, upside is expected to be limited by 50% retracement of 127.30 to 119.37 at 123.33 and bring fall resumption eventually.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 127.67). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 101.01; (P) 101.41; (R1) 101.74;
Intraday bias in EUR/JPY remains on the downside for 100.74 first. Break will confirm medium term down trend resumption. In such case, next near term target will be 61.8% projection of 111.57 to 102.48 from 105.54 at 99.92, which is close to 100 psychological level. On the upside, above 102.03 minor resistance will turn bias neutral and bring consolidations. But break of 105.54 is needed to indicate short term bottoming, otherwise, outlook will remain cautiously bearish and further decline is expected.
In the bigger picture, there is no signal of reversal yet with EUR/JPY staying below the falling 55 weeks EMA. Down trend from 2008 high of 169.96 is still in progress and should take out 100 psychological level eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. Though, sustained break of 55 weeks EMA (now at 111.04) will raise the odd of trend reversal and will turn focus back to 123.31 resistance for confirmation.
