GBP/JPY Daily Outlook
Daily Pivots: (S1) 136.73; (P) 137.54; (R1) 138.18;
Further fall is expected in GBP/JPY with 140.08 resistance intact. But still, choppy price actions from 148.42 are viewed as a corrective pattern. Hence, we'd anticipate strong support from medium term fibonacci level at 135.39 to bring rebound. On the upside, firm break of 140.08 resistance will now indicate near term reversal and turn bias back to the upside for 142.79 resistance first.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern. Or, sustained break of 50% retracement of 122.36 to 148.42 at 135.39 will turn outlook bearish for a test on 122.36 low. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement of 195.86 to 122.36 at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 117.23; (P) 117.70; (R1) 118.08;
As long as 118.78 resistance holds, deeper decline is expected in EUR/JPY. As noted before, whole medium term rebound from 109.20 is completed at 124.08 already. Next target will be 61.8% retracement of 109.20 to 124.08 at 114.88. On the upside, above 118.78 will indicate short term bottoming and bring rebound back to 119.31/120.43 resistance zone. That also coincides with 55 day EMA (now at 120.19). In that case, we'll look at the reactions in this resistance zone to assess the outlook again.
In the bigger picture, the firm break of 38.2% retracement of 109.20 to 124.08 at 118.39 indicates that medium term rise from 109.20 is completed at 124.08. That's well below 126.09 key support turned resistance. Also, EUR/JPY failed to sustain above 55 week EMA. Deeper decline would now be seen back to 109.20 low. Overall, the down trend from 149.76 (2014 high) is not completed yet. Break of 109.20 will resume such down trend towards 94.11 low. In any case, break of 126.09 is needed needed to confirm medium term reversal.