GBP/JPY Daily Outlook
Daily Pivots: (S1) 179.02; (P) 179.71; (R1) 180.96;
As noted before, the fall from 184.99 should be finished at 174.86. More importantly, the consolidation pattern from 189.70 is also possibly finished with three waves down. Intraday bias remains on the upside for 184.99. Break will most likely extend the larger up trend through 189.70 high. Meanwhile, below 177.46 minor support will turn focus back to 174.86 again.
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) 128.18; (P) 128.57; (R1) 128.97;
Intraday bias in EUR/JPY stays neutral for the moment. As long as 131.28 resistance holds, deeper decline is still expected and break off 126.09 will extend the larger fall to 61.8% projection of 149.76 to 130.13 from 136.67 at 124.53 next. However, break of 131.28 will indicate near term reversal and turn focus back to 136.67 resistance instead.
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.
