Daily Currency Outlook: GPB/JPY And EUR/JPY

Daily Pivots: (S1) 144.99; (P) 145.79; (R1) 146.40;

With 4 hours MACD crossed below signal line, a temporary top is formed at 146.60 in GBP/JPY and intraday bias is turned neutral for some consolidations. Near term outlook stays bullish as long as 141.89 minor support holds and recent rally is still expected to continue. Above 146.60 will extend rise from 118.82 to 150 psychological level next. However, a break of 141.89 will indicate short term topping and would bring deeper pull back to 139.25 and below.

In the bigger picture, medium term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long term down trend from 251.09 (2007 high). But a rise from 116.83 should at least be a move at the same degree as fall from 163.05. Thus, medium term rise is now expected back to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.




EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.00; (P) 125.42; (R1) 126.22;

The break of 124.83 minor support suggests that a temporary top is formed at 126.97 in EUR/JPY. Intraday bias is turned neutral for some consolidations. But downside should be contained above 120.70 resistance turned support and bring another rally. Above 126.97 will extend the rally from 100.32 towards 130 psychological level next. However, break of 120.70 will indicate short term topping and bring deeper pull back to 117.04 support and below.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) is already met. Sustained trading above this level will target 61.8% retracement at 140.98. And, we'll stay bullish as long as 111.43 resistance turned support holds.