GBP/JPY Daily Outlook
Daily Pivots: (S1) 154.15; (P) 155.40; (R1) 156.29;
GBP/JPY's decline is still in progress and intraday bias stays on the downside. Down trend from 195.86 has just resumed and should now target next long term fibonacci level at 147.01. On the upside, above 155.71 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited by 158.42 support turned resistance and bring fall resumption.
In the bigger picture, fall from 195.86 medium term is viewed as a corrective move and should target 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 164.09 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) 124.71; (P) 125.27; (R1) 125.69;
EUR/JPY's fall continues today and break of 124.66 support confirms completion of corrective rise from 122.06 at 128.21. Intraday bias stays on the downside for 122.06 low first. Break will resume larger fall from 149.79 and target next projection level at 117.37. On the upside, above 125.83 minor resistance will turn bias neutral and might extend the consolidation pattern from 122.06. In that case, we'd expect strong resistance from 61.8% retracement of 132.36 to 122.06 at 128.42 to limit upside and bring down trend resumption eventually.
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.
