Daily Currency Outlook: GPB/JPY And EUR/JPY

Daily Pivots: (S1) 145.20; (P) 146.24; (R1) 147.44;

Intraday bias in GBP/JPY remains neutral for the moment. A short term top is possibly in place at 147.97 and a break of 144.86 minor support will confirm near term topping and bring pull back towards 139.25 support. Before that, another rally could still be seen and above 147.97 would target a 150 psychological level next.

The bigger picture points to a medium term fall from 163.05 that has already completed at 116.83. It's a bit early to conclude reversal of the long term downtrend from 251.09 (2007 high). Rising from 116.83 should at least be a move at the same degree as a fall from 163.05. Thus, the medium term rise is now expected to reverse to 163.05. We'll stay bullish as long as the 133.48 resistance turned support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 123.01; (P) 124.29; (R1) 125.15;

Intraday bias in EUR/JPY is slightly on the downside, and correction from 127.70 could extend lower to 120.70 resistance turned support and possibly below. But we'd expect strong support from 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) to contain downside and bring rebound. A recent uptrend from 94.11 is still expected to continue for a 130 psychological level after completing the correction.

The bigger picture points to a whole downtrend from 169.96 (2008 high), that has already completed at 94.11 on bullish convergence condition in the weekly MACD. 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) has been met. Sustained trading above this level will target 61.8% retracement at 140.98. We'll stay bullish as long as the 111.43 resistance turned support holds.
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