Daily Currency Outlook: GPB/JPY And EUR/JPY

Daily Pivots: (S1) 141.24; (P) 142.10; (R1) 142.86;

Intraday bias in GBP/JPY remains on the downside and correction from 147.97 could extend lower to 55 days EMA (now at 140.92) and below. But downside should be contained by 139.25 (38.2% retracement of 125.67 to 147.97 at 139.45 and bring rebound. We'd expect recent up trend to resume later. Above 145.89 will flip bias to the upside for retesting 147.97 first.

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 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.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 121.81; (P) 123.25; (R1) 124.26;

EUR/JPY dips further as correction from 127.70 continues and intraday bias is mildly on the downside for 120.70 resistance turned support. However, as noted before, we'd expect downside to be contained above 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) and bring rebound. Recent rally is expected to resume later and break of 127.70 will confirm rise resumption for 130 psychological level.

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.
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