GBP/JPY Daily Outlook
Daily Pivots: (S1) 153.79; (P) 154.65; (R1) 155.81;
Intraday bias in GBP/JPY stays neutral for consolidation above 151.64 temporary low. Upside of recovery should be limited below 158.42 support turned resistance and bring fall resumption. Below 151.64 will target next long term fibonacci level at 147.01.
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. We'll start to look for reversal signal below there. 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) 123.10; (P) 123.54; (R1) 124.03;
Intraday bias in EUR/JPY remains neutral for some consolidations first. We're favoring the case that correction from 122.06 has completed at 128.21 already and down trend from 149.76 is ready to resume. Break of 122.06 will confirm this bearish case and target next projection level at 117.37. Break of 124.66 will extend the consolidation from 122.06 with another rise. 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.
