GBP/JPY Daily Outlook
Daily Pivots: (S1) 157.88; (P) 159.56; (R1) 162.62;
Intraday bias in GBP/JPY remains on the upside for 154.09 resistance first. Break of 55 days EMA and bullish convergence condition in daily MACD, are raising the prospect of trend reversal. Break of 154.09 will indicate that fall from 195.86 has completed and target 38.2% retracement of 195.86 to 151.64 at 168.53. Though, break of 156.50 minor support will maintain bearish outlook and turn bias to the downside for 151.64 low.
In the bigger picture, fall from 195.86 medium term is viewed as a corrective move. There is no confirmation of completion yet and GBP/JPY might still target 61.8% retracement of 116.83 to 195.86 at 147.01. We'll start to look for reversal signal below there. However, break of 164.09 will suggests that decline is finished and open up the case for rebound to 61.8% retracement of 195.86 to 151.64 at 178.96 and above.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 124.09; (P) 124.79; (R1) 126.18;
Intraday bias in EUR/JPY remains mildly on the upside for the moment. It should be noted that bullish convergence condition is seen in daily MACD. But there is no confirmation of trend reversal yet. And fall from 140.04, as well as the down trend from 149.76, are still in favor to extend lower. Below 123.35 minor support will turn bias back to the downside. Break of 121.70 will target 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, however, will suggest that the correct has completed earlier than we thought and turn outlook bullish.
