GBP/JPY Daily Outlook
Daily Pivots: (S1) 179.06; (P) 179.98; (R1) 180.50;
Initial bias in GBP/JPY remains on the downside this week for 61.8% retracement of 168.01 to 189.70 at 176.29 next. Break will target key support level of 168.01. In case of recovery, risk of stay on the downside as long as 182.69 minor resistance holds.
In the bigger picture, the up trend from 116.83 is starting to lose medium term momentum again with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 139.83; (P) 140.59; (R1) 141.01;
With 141.71 minor resistance intact, further fall is still expected. Firm break of 61.8% retracement of 134.13 to 149.76 at 140.10 will pave the way to key support level at 134.13. On the upside, above 141.71 minor resistance will turn bias neutral first. But risk will remain on the downside as long as 144.95 resistance holds.
In the bigger picture, EUR/JPY started to lose medium term momentum ahead of 76.4% retracement of 169.96 to 94.11 at 152.59. Bearish divergence condition is also seen in weekly MACD. The up trend from 94.11 long term bottom could be starting to top. Nonetheless, break of 134.13 support is needed to confirm medium term reversal. Otherwise, further rise is still expected through 152.59 fibonacci level.
