Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 117.45; (P) 117.86; (R1) 118.19;

Intraday bias in GBP/JPY remains neutral and more consolidation could be seen above 117.29 temporary low. Though, near term outlook remains bearish with 119.11 resistance intact and recent decline is expected to continue. Below 117.29 will target 116.83 key support level next. Break there will confirm resumption of larger down trend. On the upside, break of 119.11 will indicate short term bottoming, on bullish convergence condition in 4 hours MACD, and bring stronger rebound back towards 55 days EMA (now at 120.58).

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) 97.21; (P) 97.76; (R1) 98.39;

Intraday bias in EUR/JPY remains neutral and more consolidations could be seen above 97.03 temporary low. Nonetheless, near term outlook remains bearish with 98.80 resistance intact and recent fall is expected to continue. 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 back towards 55 days EMA (now at 101.63).

In the bigger picture, 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 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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