GBP/JPY Daily Outlook
Daily Pivots: (S1) 177.87; (P) 178.97; (R1) 179.86;
GBP/JPY's decline from 189.70 extends to as low as 177.72 so far today and intraday bias remains on the downside. Current fall should target 61.8% retracement of 168.01 to 189.70 at 176.29 next. Break will target key support level of 168.01. On the upside, break of 180.93 minor resistance is needed to indicate short term reversal. Otherwise, outlook will stay mildly bearish in case of recovery.
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) 137.91; (P) 139.20; (R1) 140.10;
EUR/JPY's decline from 149.76 extended further to as low as 138.15 so far today and intraday bias remains on the downside. Current fall should extend to take on key support level at 134.13. On the upside, break of 141.71 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain cautiously bearish in case of recovery.
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.
