GBP/JPY Daily Outlook
Daily Pivots: (S1) 155.71; (P) 156.71; (R1) 158.20;
The corrective rise from 151.64 is still in progress but we'd expect strong resistance from 158.42 support turned resistance to limit upside and bring down trend resumption. Below 155.25 minor support will turn bias to the downside for 151.64 low first. Break will extend larger fall from 195.86 and 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) 123.63; (P) 123.98; (R1) 124.43;
A short term bottom was formed at 121.70 and rebound from there is extend to 55 days EMA (now at 125.78). There is no clear sign of trend reversal yet and thus, we'd be cautious on strong resistance above there to limit upside. Meanwhile, break of 121.70 will extend the larger down trend to next projection level at 117.37.
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 128.21 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
