Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 131.71; (P) 132.18; (R1) 132.93;

Intraday bias in GBP/JPY remains on the upside with 131.44 minor support intact and current rally is expected to continue to 140.02 key resistance level. On the downside, below 131.44 minor support will turn bias neutral and bring consolidations. But break of 126.54 is needed to signal short term topping. Otherwise, outlook will remain bullish for another rally

In the bigger picture, recent development argues that choppy decline from 163.05 is completed at 116.83 already. Focus remains on 140.02 and sustained break there will confirm this bullish case. More importantly, this will also signal completion of the whole down trend from 2007 high of 251.09. In such case, stronger rise should be seen back to retest on 163.05 resistance next. Though, failure below 140.02 resistance will indicate that GBP/JPY is merely in sideway trading pattern between 116.83 and 140.02.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 109.47; (P) 110.02; (R1) 110.86;

EUR/JPY's rally resumed after brief retreat and reaches as high as 110.56 so far. Intraday bias is back on the upside and current rally should target 111.57 key resistance next. As noted before, fall from 123.31 has likely finished on bullish convergence condition in daily MACD. Break of 111.57 will affirm this bullish case and target 123.31 key resistance next. On the downside, below 109.17 will turn bias neutral and bring consolidations. But after all, near term outlook will remain bullish as long as 105.64 support holds.

In the bigger picture, the case of trend reversal in EUR/JPY is starting to build up and 97.03 should be a medium term bottom. Break of 111.57 will affirm this case and should at least push EUR/JPY for a test on 123.31 resistance. Break there will argue that whole down trend from 2008 high of 169.96 is completed and reversed. Though, failure to take out 123.31 and reversal from there will likely bring some sideway trading between 97.03/123.31 in medium term.
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