GBP/JPY Daily Outlook
Daily Pivots: (S1) 121.17; (P) 121.67; (R1) 122.44;
GBP/JPY's rebound from 120.29 extends further and with 121.78 minor resistance broken, choppy retreat from 122.56 should have completed at 120.29 already. In other words, rebound from 119.37 is resuming. Intraday bias is back on the upside for 122.56 first and break will target 100% projection of 119.37 to 122.56 from 120.29 at 123.48. But strong resistance should be seen from 61.8% retracement of 127.30 to 119.37 at 124.27 to limit upside and complete the rebound.
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) 101.44; (P) 101.81; (R1) 102.24;
EUR/JPY's recovery from 101.04 extends further today and is pressing 4 hours 55 EMA. Note again that as long as 102.98 minor resistance holds, near term outlook remains bearish and another fall is still mildly in favor. Break of 101.04 will l extend the decline from 111.57 to 61.8% projection of 111.57 to 102.48 from 105.54 at 99.92, which is close to 100 psychological level. However, break of 102.98 will argue that whole fall from 111.57 might be finished and should bring stronger rebound to 105.54 and above.
In the bigger picture, EUR/JPY moved further away from the falling 55 weeks EMA and affirmed the case that downtrend from 2008 high of 169.96 is still in progress. 100 psychological level should be taken out 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. On the upside, break of 111.57 resistance is needed to be the first signal of reversal. Otherwise, we'll continue to stay bearish in the cross.
