GBP/JPY Daily Outlook
Daily Pivots: (S1) 121.65; (P) 121.98; (R1) 122.34;
Intraday bias in GBP/JPY remains neutral for the moment. Consolidative rise from 119.37 might continue but in case of another rise, upside should be limited by 61.8% retracement of 127.30 to 119.37 at 124.27 to finish the consolidation finally and bring fall resumption. On the downside, below 120.29 should target 119.37 and below.
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 127.04). 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) 101.65; (P) 101.92; (R1) 102.13;
Intraday bias in EUR/JPY remains neutral for the moment. But with 102.98 minor resistance intact, another fall is still expected. Below 101.04 temporary low will target 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.
