GBP/JPY Daily Outlook
Daily Pivots: (S1) 155.00; (P) 156.92; (R1) 158.13;
Intraday bias in GBP/JPY remains on the downside for the moment. Corrective rebound from 154.70 should have completed at 164.09 already. Deeper should now be seen back to retest 154.70 first. Break will resume larger down trend from 195.86 and target next long term fibonacci level at 147.01. On the upside, above 158.42 minor resistance will delay this bearish case and could extend the consolidation from 154.70 with another rise. But in that case, we'd expect strong resistance above 61.8% retracement of 175.01 to 154.70 at 167.25 to limit upside and bring down trend resumption.
In the bigger picture, a medium term top was formed at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and would likely extend to 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 175.01 resistance is needed to indicate completion of fall from 195.86. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 124.93; (P) 125.88; (R1) 126.52;
The firm break of near term rising channel suggests that the corrective rise from 122.06 has completed at 128.21 already, ahead of 61.8% retracement of 132.36 to 122.06 at 128.42. Intraday bias is mildly on the downside for 124.66 support first. Break will confirm this case and should target 122.06 low.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
