GBP/JPY Daily Outlook
Daily Pivots: (S1) 184.13; (P) 185.97; (R1) 186.99;
A short term top is already in place at 189.70 on bearish divergence condition in 4 hours MACD. Deeper fall should be seen to 184.31 support and below as the correction extends. At this point, we'd expect strong support from 181.09, 38.2% retracement of 168.01 to 189.70 at 181.41, to contain downside and bring rebound. On the upside, break of 189.70 is needed to confirm rally resumption. Otherwise, we'd expect more corrective trading in near term.
In the bigger picture, the up trend from 116.83 is still in progress for 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. On the downside, break of 168.01 support is needed to confirm medium term topping. Otherwise, outlook will stay bullish in case of pull back.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 146.02; (P) 147.14; (R1) 147.77;
As noted before, a short term top is formed at 149.76 on bearish divergence condition in 4 hours MACD. Deeper decline would be seen to 144.21 support as the correction extends lower. At this point, we'd expect strong support from 142.08, 50% retracement of 134.13 to 149.76 at 141.94, to contain downside and bring rebound. On the upside, break of 149.76 is needed to confirm rally resumption. Otherwise, we'd expect more corrective trading in near term.
In the bigger picture, the up trend from 94.11 long term bottom is still in progress for 76.4% retracement of 169.96 to 94.11 at 152.59 next. Break of 152.59 will target a test on 169.96 (2008 high). On the downside, break of 134.13 is needed to confirm medium term reversal. Otherwise, outlook will stay bullish.
