Daily Currency Outlook: GPB/JPY and EUR/JPY

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

A temporary low is in place at 117.29 and intraday bias is turned neutral for the moment. Nonetheless, near term outlook remains bearish as long as 119.11 resistance holds and recent fall is still expected to continue. Below 117.29 will target 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, on bullish convergence condition in 4 hours MACD, 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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GBP/JPY" title="GBP/JPY" width="600" height="330">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 97.05; (P) 97.22; (R1) 97.42;

A temporary low is in place in EUR/JPY at 97.03 and intraday bias is turned neutral for some consolidations. But near term outlook remains bearish with 98.80 resistance intact and current fall is expected to resume sooner or later. Below 97.03 will target 61.8% projection of 102.53 to 97.27 from 98.80 at 95.54 next. However, break of 98.80 will indicate short term bottoming, on bullish convergence condition in 4 hours MACD, and bring stronger rebound.

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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