GBP/JPY Daily Outlook
Daily Pivots: (S1) 176.95; (P) 177.65; (R1) 178.33;
Intraday bias in GBP/JPY is neutral for the moment as it's drawing support from 61.8% retracement of 168.01 to 189.70 at 176.29 As long as 180.93 resistance holds, deeper decline is still expected Below 175.86 will extend the fall from 189.70 to retest 168.01 key support level. Meanwhile, break of 180.93 will bring stronger rebound first.
In the bigger picture, the uptrend 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 uptrend 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) 135.41; (P) 136.12; (R1) 137.10;
A temporary low is in place at 134.68 and intraday bias is turned neutral for the moment. Near term outlook stays bearish as long as 138.78 minor resistance holds. Below 134.68 will target 134.13 key support level. Decisive break there will carry larger bearish implications. Though, break of 138.78 will indicate short term bottoming and bring stronger rebound.
In the bigger picture, current development continues to indicate medium term topping at 149.76, ahead of 76.4% retracement of 169.96 to 94.11 at 152.59, on bearish divergence condition in weekly MACD. Focus is on 134.13 support. Decisive there will confirm this bearish case and bring deeper correction to 38.2% retracement of 94.11 to 149.76 at 128.50.
