Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 122.02; (P) 122.50; (R1) 123.29;

GBP/JPY's rebound from 117.29 resumed after brief retreat and reaches as high as 122.97 so far. Intraday bias is back on the upside and current rally is expected to target 100% projection of 117.29 to 122.04 from 119.58 at 124.33. Note that rise from 117.29 is viewed as the third leg of the consolidation pattern from 116.83 and might take on 127.30 resistance eventually. On the downside, below 121.40 minor support will turn bias neutral and bring consolidations. But downside should be contained above 119.58 support and bring another rally.

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) 102.24; (P) 102.76; (R1) 103.68;

Intraday bias in EUR/JPY is still on the upside and current rebound from 97.03 is still in progress for 100% projection of 97.03 to 102.20 from 99.24 at 104.41. On the downside, below 102.13 minor support will turn bias neutral first. But near term outlook will remain cautiously bullish as long as 99.24 support holds.

In the bigger picture, 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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