Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 119.43; (P) 119.68; (R1) 120.19;

GBP/JPY's recovery from 117.29 short term bottom might extend further higher to 122.76 resistance. As noted before, such rebound is possibly the third leg of the consolidation pattern from 116.83. Break should confirm this bullish case and target a test on 127.30 resistance. On the downside, below 118.30 minor support will indicate completion of the rebound and flip bias back to the downside for 117.29 support.

In the bigger picture, current development indicates that consolidation from 116.83 is still in progress and fall from 140.20, which is part of the medium term down trend from 163.05, is not ready to resume yet. While rise from 117.29 might extend further higher, we'd expect strong resistance from 50% retracement of 140.02 to 116.83 at 128.42 to finish the consolidation and bring down trend resumption. We will not consider medium term trend reversal yet before sustained trading above 128.42 fibonacci level.

GBP/JPY H4" title="GBP/JPY H4" width="600" height="300">

GBP/JPY" title="GBP/JPY" width="600" height="300">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 99.22; (P) 99.78; (R1) 100.14;

Intraday bias in EUR/JPY remains neutral for the moment and some more consolidations could be seen. But rebound from 97.03 short term bottom is in favor to continue with 98.54 minor support intact and above 100.33 will bring stronger rebound. Though, there is no indication of down trend reversal yet as long as 102.53 resistance holds. That is fall from 111.57 is 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 medium term reversal. Otherwise, we'll continue to stay bearish in the cross even in case of rebound.

EUR/JPY H4" title="EUR/JPY H4" width="600" height="300">

EUR/JPY" title="EUR/JPY" width="600" height="300">