Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 117.42; (P) 117.42; (R1) 117.42; More

Intraday bias in GBP/JPY remains on the downside for the moment. Current fall is expected to extend to 116.83 key support next. On the upside, break of 119.10 resistance is needed to confirm short term bottoming. Otherwise, outlook will remain bearish even in case of recovery.

In the bigger picture, fall from 127.30 is tentatively treated as resuming of decline from 140.20, which is part of the medium term down trend from 163.05. Break of 116.83 will confirm such down trend resumption and should target 61.8% projection of 140.02 to 116.83 from 127.30 at 112.96. On the upside, break of 127.30 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 97.81; (P) 98.18; (R1) 98.73;

EUR/JPY's recovery from 97.27 continues today and reaches as high as 98.62 so far. Further rise could be seen but at this point, we'd expect strong resistance at near term falling channel (now at 99.21) to limit upside and bring fall resumption. Below 97.27 will extend recent decline towards 100% projection of 123.31 to 100.74 from 111.57 at 89.00 next.

In the bigger picture, EUR/JPY's downside momentum is accelerating with a break of lower trend line in weekly chart and with weekly MACD staying below signal line Current fall from 123.31 is part of the down trend from 2008 high of 169.96 and should target 100% projection of 139.21 to 105.42 from 123.31 at 89.52. At this point, we'd anticipate strong support there to bring at least a rebound attempt, as it's close to 88.96 all time low as well as the above mentioned 100% near term projection target at 89.00. Though, a break of 111.57 resistance is needed to be the first signal of reversal. Otherwise, we'll continue to stay bearish in the cross even in case of rebound.

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