Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 117.37; (P) 117.78; (R1) 118.27;

GBP/JPY lost form downside momentum as the week starts but after all, near term outlook remains bearish as long as 119.11 minor resistance holds. Current fall is expected to continue to 116.83 key support level next. Break there will confirm resumption of larger down trend. Though, break of 119.11 will indicate short term bottoming and bring stronger rebound instead.

In the bigger picture, fall from 127.30 is tentatively treated as resumption 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) 96.89; (P) 97.84; (R1) 98.50;

Intraday bias in EUR/JPY remains on the downside for the moment. Current fall from 111.57 is expected to continue 61.8% projection of 102.53 to 97.27 from 98.80 at 95.54 next. On the upside, break of 98.80 resistance is needed to signal short term bottoming. Otherwise, near term outlook will remain bearish even in case of recovery.

In the bigger picture, current fall from 123.31 is part of the downside 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 as100% projection of 123.31 to 100.74 from 111.57 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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