GBP/JPY Daily Outlook
Daily Pivots: (S1) 175.53; (P) 176.02; (R1) 176.79;
GBP/JPY drops to as low as 175.26 so far and intraday bias remains on the downside. Firm break of 175.49 support will extend the whole decline from 189.70 and will target 168.10 key support level next. On the upside, break of 179.28 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, the up trend from 116.83 lost much medium term momentum 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 up trend 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) 126.34; (P) 127.08; (R1) 127.68;
EUR/JPY drops to as low as 126.49 so far and the break of 126.89 indicates resumption of whole fall from 149.76. Intraday bias remains on the downside for 61.8% projection of 149.76 to 130.13 from 136.67 at 124.53 next. On the upside, above 128.23 minor resistance will turn bias neutral and bring consolidations. But near term outlook will stay bearish as long as 131.28 resistance holds.
In the bigger picture, the correction from 149.76 medium term top is still in progress and took out 38.2% retracement of 94.11 to 149.76 at 128.50 already. Such fall would now extend to 61.8% retracement at 115.36, which we might find strong support. In any case, outlook will stay bearish as long as 136.67 resistance holds and deeper decline is expected.
