Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 118.57; (P) 119.14; (R1) 119.98;

GBP/JPY rises further to as high as 119.72 so far today and the strong break of 119.11 resistance confirms that a short term bottom if formed at 117.29, on bullish convergence condition in 4 hours MACD. Further rebound should be seen to 55 days EMA (now at 120.42) and above. But strong resistance is expected at 122.76 to limit upside and bring fall resumption. Below 118.30 minor support will flip bias back to the downside to retest 117..29 low first.

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) 99.00; (P) 99.52; (R1) 100.51;

EUR/JPY's recovery from 97.03 short term bottom is still in progress. Intraday bias remains on the upside for 38.2% retracement of 105.54 to 97.03 at 100.28 and above. But after all, near term outlook will remain bearish as long as 102.48 support turned resistance holds and recent decline is still expected to continue. Below 98.54 minor support will flip bias back to the downside for retesting 97.03 low.

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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