Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 119.75; (P) 120.19; (R1) 120.61; More

More consolidations could be seen below 122.04 temporary low. But again, rebound from 117.29 is still in favor to continue with 119.19 minor support intact. Rise from 117.29 is viewed as the third leg of the consolidation pattern from 116.83. Above 122.04 will bring another rise towards 127.30 resistance. Nonetheless, break of 119.19 will indicate completion of the rebound and flip bias back to the downside for 117.29 instead.

In the bigger picture, 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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EUR/JPY Daily Outlook

Daily Pivots: (S1) 99.23; (P) 100.05; (R1) 100.58;

EUR/JPY's fall from 102.20 continues today and reaches as low as 99.24 so far. Focus is on 99.13 support and break there will confirmed that corrective rebound from 97.03 is already completed at 102.20. Deeper fall should then be seen through 97.03 low to extend the whole decline from 123.31. On the upside, above 100.88 minor resistance will flip bias back to the upside and would likely extend the rebound from 97.03 towards falling trend line resistance (now at 106.15).

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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