Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 120.20; (P) 120.80; (R1) 121.97; More

GBP/JPY rises further to as high as 121.78 so far and intraday bias remains on the upside for 122.76 resistance first. As noted before, rise from 117.29 is possibly the third leg of the consolidation pattern from 116.83. Break of 122.76 resistance should confirm this bullish case and target a test on 127.30 resistance. On the downside, below 121.04 minor support will turn bias neutral and bring retreat. But downside should be contained above 119.19 support an bring another rise.

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.

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GBP/JPY" title="GBP/JPY" width="700" height="480">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 100.42; (P) 100.85; (R1) 101.69; More

EUR/JPY rises further to as high as 101.64 so far today and intraday bias remains on the upside for 102.53 resistance. The strength of the rebound from 97.03 short term bottom suggests that fall from 111.57 is already completed. Break of 102.53 resistance will confirm this case and target a test on falling trend line resistance (now at 106.60). On the downside, below 10.08 minor support will turn bias neutral and bring consolidations. But another rise will now remain mildly in favor as long as 99.13 support holds.

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.

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