GBP/JPY Daily Outlook
Daily Pivots: (S1) 185.93; (P) 186.46; (R1) 187.22;
A temporary top is in place at 187.79 and intraday bias is turned neutral. Below 184.93 will target 181.59 as consolidation from 189.70 extends. In that case, 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. Above 187.79 will bring another rise. But again, 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) 144.68; (P) 145.12; (R1) 145.44;
The correction from 149.76 is still in progress and might extend 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, above 147.21 minor resistance will turn bias back to the upside. But 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.
