GBP/JPY Daily Outlook
Daily Pivots: (S1) 138.61; (P) 139.40; (R1) 139.88;
Intraday bias in GBP/JPY remains on the upside with cautiously bullish outlook. Current developments argues that consolidation pattern from 148.42 is possibly completed at 135.58, just ahead of 135.39 fibonacci level. Decisive break of 140.08 resistance will affirm this case. GBP/JPY should then target a test on 148.42 key resistance level. Meanwhile, this bullish case will be favored as long as 138.30 minor support holds, in case of retreat.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. As long as 50% retracement of 122.36 to 148.42 at 135.39 holds, another rising leg would be seen to 38.2% retracement of 195.86 to 122.36 at 150.42 and possibly above. However, firm break of 135.39 will bring retest of 122.36, with prospect of resuming the larger down trend from 195.86.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 116.25; (P) 116.61; (R1) 116.96;
Intraday bias in EUR/JPY remains neutral as the correction from 114.84 continues. At this point, we'd still expect upside to be limited by 118.23 resistance and bring another fall. Corrective rise from 109.20 should have completed at 124.08. Sustained break of 61.8% retracement of 109.20 to 124.08 at 114.88 will pave the way to retest 109.20 low.
In the bigger picture, medium term corrective rise from 109.20 should have completed at 124.08, ahead of 126.09 support turned resistance. Medium term down trend from 149.76 is likely resuming. Break of 109.20 will target 94.11 low. In any case, break of 126.09 is needed needed to confirm medium term reversal. Otherwise, outlook will remain bearish in case of another rebound.
